Al and Bill Are the Only Workers in a Small

question 17

Multiple Choice

Al and Bill are the only workers in a small factory which makes geegaws and doodads.Al can make 5 geegaws per hour or 15 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:

Final Exam

A comprehensive test given at the end of a course to evaluate a student's knowledge and understanding of the subject material.

Term Paper

An extensive research paper written by students over an academic term, representing a significant portion of a grade.

Selye's General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when exposed to prolonged stress, proposed by Hans Selye.

Alarm

A warning signal or device designed to alert individuals of a potential danger, emergency, or the need for immediate attention.