Figure 3-3 Ice Cream and Cones Are Measured in Kilograms

question 68

Multiple Choice

Figure 3-3
Ice cream and cones are measured in kilograms.
-Refer to Figure 3-3. What does each of the two producers have a comparative advantage in?

• A) Ben has a comparative advantage in cones, and Jerry has a comparative advantage in ice cream.
• B) Ben has a comparative advantage in ice cream, and Jerry has a comparative advantage in cones.
• C) Ben has a comparative advantage in neither good, and Jerry has a comparative advantage in both goods.
• D) Ben has a comparative advantage in both goods, and Jerry has a comparative advantage in neither good.

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Definitions:

One-Tailed

One-tailed tests in statistics specify a direction of the hypothesis, predicting either a positive or negative change but not both.

Statistically Significant

Indicating that a result from data analysis is not likely to occur by chance alone, according to a pre-determined significance level, and suggests true effects or differences.

Infinity

A concept in mathematics denoting something without any limit, often represented by the symbol ∞.

Linear Relationship

Relationship between variables appropriately represented by a straight line.