Tom Is a Castaway Who Washes Up on a Remote

question 123

Multiple Choice

Tom is a castaway who washes up on a remote island. He can kill eight birds per hour or catch ten fish per day. The natives on the island can kill ten birds per day or catch twenty fish per day. Tom has a comparative advantage in:

• A)​hunting birds.
• B)​fishing.
• C)​both hunting birds and fishing
• D)​neither hunting birds or fishing.

Recognize the limitations and challenges of barter systems.

Identify the functions and characteristics of money.

Appreciate the role of specialization and labor division in economic exchange.

Explain the evolution of money from barter to contemporary forms.

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Definitions:

Risk Of Loss

Refers to the potential for financial loss in a transaction or investment, often concerning who bears the responsibility if goods are damaged or lost.

Courier Service

A company that provides fast and secure delivery of packages, documents, and other goods from one location to another.

Good Title

Legitimate ownership of property free from legal encumbrances or claims.

Steals Bicycle

The act of unlawfully taking someone else's bicycle without permission with the intent to permanently deprive the owner of it.