Al and Bill Are the Only Workers in a Small

question 7

Multiple Choice

Al and Bill are the only workers in a small factory that makes geegaws and doodads.Al can make 7 geegaws per hour or 21 doodads per hour.Bill can make 4 geegaws per hour or 8 doodads per hour.Assuming that neither of them finds one task more odious than the other,

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

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Definitions:

Employment-At-Will

A doctrine followed by most jurisdictions in the United States that says an employer can dismiss an employee at any time for any reason.

Wrongful Discharge

The unjust termination of an employee's contract, typically in violation of legal or contractual terms.

Title VII

Refers to a portion of the Civil Rights Act of 1964 prohibiting employment discrimination based on race, color, religion, sex, and national origin.

BFOQs

Bona Fide Occupational Qualifications - employment qualifications that employers are allowed to consider while making decisions about hiring and retention of employees.