Suppose That John Can Produce 80 Widgets Per Hour and Can

question 26

Multiple Choice

Suppose that John can produce 80 widgets per hour and can lift 75 kilograms.Robert,on the other hand,can produce 60 widgets per hour and can lift 50 kilograms.It can be concluded that

• A)John has a comparative advantage in lifting weights.
• B)Robert has an absolute advantage in lifting weights.
• C)Robert has a comparative advantage in the production of widgets.
• D)John has an absolute advantage in widget production.

---

Definitions:

Population

The entire aggregation of items from which samples can be drawn for statistical measurement or inference.

Normal Distribution

A statistical distribution that is uniform around the average, indicating that observations close to the mean are more common than observations distant from the mean.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; used in finance to quantify the risk of an investment.

Capital Gain

The profit earned from the sale of an asset, such as stocks or real estate, which exceeds its purchase price.