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.

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Definitions:

Limited Liability

A legal principle that limits an investor's or owner's financial loss in a business venture to the amount of capital they have invested.

Carelessness

The lack of attention or consideration for the consequences of one's actions, often leading to mistakes or accidents.

Barber Shop

A place of business where people primarily go to get their hair cut, often offering additional grooming services for men.

Likelihood Of Success

An assessment of the potential to achieve a desired outcome, often used in legal contexts to evaluate the chances of winning a case.