Table 3-3 -Refer to Table 3-3.What Does Each of the Two Producers

question 78

Multiple Choice

Table 3-3

-Refer to Table 3-3.What does each of the two producers have a comparative or absolute advantage in

• A)Kevin has an absolute advantage in blankets, and Amy has a comparative advantage in sweaters.
• B)Kevin has an absolute advantage in both goods, and Amy has a comparative advantage in blankets.
• C)Kevin has an absolute advantage in sweaters, and Amy has a comparative advantage in sweaters.
• D)Kevin has an absolute advantage in neither good, and Amy has a comparative advantage in sweaters.

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Definitions:

National Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments, private investors, and international financial institutions.

Stock Variable

A measure of a quantity at a particular point in time, such as wealth or capital.

Flow Variable

A quantity that is measured over a specific period of time, such as income or expenditure.

Federal Taxes

Taxes collected by the federal government from individuals and corporations to fund public goods and services.