Mason and Chloe Each Produce Two Goods

question 135

Multiple Choice

Mason and Chloe each produce two goods. According to the principle of comparative advantage, the total output produced by these individuals will be greatest

• A) if Chloe produces both goods and Mason produces nothing.
• B) if each good is produced by the individual who has the lower opportunity cost of producing that good.
• C) if each good is produced by the individual who has the higher absolute cost of producing that good.
• D) if Mason produces both goods and Chloe produces nothing.

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Definitions:

Speaking Spanish

The act of communicating verbally in Spanish, a Romance language originating from the Castile region of Spain.

Mexican

Pertaining to Mexico, its people, culture, or language.

Necessary Condition

A prerequisite that must exist or be met for a particular event or thing to occur or be considered true.

Screws

Fasteners with a threaded shaft designed to hold objects together or to position them.