Table 2.5 Table 2.5 Shows the Output Per Month of Two People

question 83

Multiple Choice

Table 2.5

Table 2.5 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2.5. Which of the following statements is true?

• A)Fred has an absolute advantage in making both products.
• B)Barney has an absolute advantage in making both products.
• C)Barney has an absolute advantage in making pogo sticks and Fred in making unicycles.
• D)Barney has an absolute advantage in making unicycles and Fred in making pogo sticks.

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Definitions:

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A corporation or business entity that is registered and operates within the United States.

Japanese Yen

Japanese Yen (JPY) is the official currency of Japan, symbolized by ¥ or as JPY in foreign exchange markets.

Merchandise Valued

The total worth of goods held by a company for sale, often assessed at the end of an accounting period.

South African Firm

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