Table 132 Sarita and Gabriel Own S&G Bakery

question 96

Multiple Choice

Table 13.2 Sarita and Gabriel own S&G Bakery.Table 13.2 lists the number of pies and cakes Sarita and Gabriel can each bake in one day.
-Refer to Table 13.2.Select the statement that accurately interprets the data in the table.

• A)Sarita has a comparative advantage in baking pies.
• B)Gabriel has an absolute advantage in baking cakes.
• C)Gabriel has a comparative advantage in baking pies.
• D)Gabriel has a comparative advantage in baking pies and baking cakes.

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Definitions:

Initial Investment

The amount of money used to start a project, purchase an asset, or invest in a financial instrument.

Rate of Return

The capital gain or loss realized on an investment over an allocated period, defined as a percentage of the investment’s preliminary cost.

Per Month

A time frame reference indicating occurrences or measurements within a calendar month.

Effective Annual Rate

A financial metric that represents the equivalent annual interest rate taking compounding into account, thus providing a more accurate measure of interest earned or paid over a year.