Al and Bill Are the Only Workers in a Small

question 16

Multiple Choice

Al and Bill are the only workers in a small factory that makes geegaws and doodads.Al can make 5 geegaws per hour or 10 doodads per hour.Bill can make 4 geegaws per hour or 24 doodads per hour.Assuming that neither of them finds one task more odious than the other,

• A)Bill has a comparative advantage in producing geegaws and Al has a comparative advantage in producing doodads.
• B)Bill has a comparative advantage in producing both geegaws and doodads.
• C)Al has a comparative advantage in producing geegaws and Bill has a comparative advantage in producing doodads.
• D)Al has a comparative advantage in producing both geegaws and doodads.
• E)both have a comparative advantage in producing doodads.

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Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus that becomes elicited by the stimulus after repeated associations with an unconditioned stimulus.

Hypodermic Needle

This refers to a slender, hollow needle attached to a syringe, used for injecting substances into the body or extracting fluids from it.

Unconditioned Stimulus

A stimulus that naturally triggers a response without the need for prior learning.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning or conditioning.