Two Individuals Engage in the Same Two Productive Activities

question 79

Multiple Choice

Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity?

• A) One individual's production possibilities frontier is steeper than the other individual's production possibilities frontier.
• B) One individual is faster at both activities than the other individual.
• C) One individual's opportunity costs are the same as the other individual's opportunity costs.
• D) None of the above is correct; one of the two individuals always will have a comparative advantage in at least one of the two activities.

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Definitions:

Confidence Interval

A swath of values, taken from statistical analyses of a sample, anticipated to hold within it the value of a not-yet-known population trait.

Standard Error

The standard deviation of the sampling distribution of a statistic, typically the mean.

Mean

The average value of a set of numbers, calculated by dividing the sum of all values by the number of values.

Confidence Interval

A range of values derived from sample data that is likely to contain the value of an unknown population parameter.