Suppose Jim and Tom Can Both Produce Two Goods: Baseball

question 131

Multiple Choice

Suppose Jim and Tom can both produce two goods: baseball bats and hockey sticks.Which of the following is not possible?

• A)Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks.
• B)Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks.
• C)Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats.
• D)Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks.

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Definitions:

Accrued Interest

The interest that has accumulated on a bond since the last interest payment up to, but not including, the present date.

Semiannually

A term describing events or actions that occur twice a year, typically every six months.

Investment Grade

A rating assigned to bonds that indicates they are of high quality and low credit risk.

Bond Grade

The rating assigned to a bond by credit rating agencies, reflecting the issuer's creditworthiness and the bond's risk level.