Olivia Bakes Cakes and Andrew Grows Corn

question 11

Multiple Choice

Olivia bakes cakes and Andrew grows corn.Olivia and Andrew both like to eat cake and eat corn.In which of the following cases is it impossible for both Olivia and Andrew to benefit from trade?

• A)Olivia cannot grow corn and Andrew cannot bake cakes.
• B)Olivia is better than Andrew at baking cakes and Andrew is better than Olivia at growing corn.
• C)Olivia is better than Andrew at baking cakes and at growing corn.
• D)Both Olivia and Andrew can benefit from trade in all of the above cases.

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Definitions:

Physical Harm

Injury or damage to the body of a person, which can result from accidents, violence, or other physical impact.

Below-Market Price

A price for goods or services that is lower than the current market rate or the value typically expected for similar items under normal market conditions.

Duress

A condition where an individual is forced or coerced into acting against their will or making decisions under pressure or threat.

Investment Firm

A business or financial institution that invests the pooled capital of investors in financial securities, typically offering a range of investment products and services.