Don Can Produce 10 Pens or 20 Pencils in One

question 12

Multiple Choice

Don can produce 10 pens or 20 pencils in one hour while Bob can produce 5 pencils or 15 pens in one hour.Which of the following statements is correct?

• A)Bob has an absolute advantage over Don in the production of pencils.
• B)Bob has an absolute advantage over Don in the production of pens.
• C)Bob has a comparative advantage over Don in the production of pencils.
• D)Don has a comparative advantage over Bob in the production of pens.
• E)Don does not have a comparative advantage in the production of either good.

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Definitions:

Absorbed

Fully engaged or engrossed in an activity or subject to the point of being oblivious to other things.

Self-awareness

The conscious knowledge of one's own character, feelings, motives, and desires.

Right Answer

The correct solution or reply to a question or problem, often determined by factual information or established norms.

Eminent Creativity

A high level of creative ability that significantly impacts a field or area, demonstrating originality and innovation.