Table 2-10 Table 2-10 Shows the Output Per Month of Month

question 161

Multiple Choice

Table 2-10
Table 2-10 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-10. Which of the following statements is true?

• A) Fred has a comparative advantage in making both products.
• B) Barney has a comparative advantage in making both products.
• C) Barney has a comparative advantage in making pogo sticks and Fred in making unicycles.
• D) Barney has a comparative advantage in making unicycles and Fred in making pogo sticks.

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Definitions:

Selective Attention

Process of focusing on specific stimuli, locking on to some things in the environment and ignoring others.

Interpersonal Perception

The process of making judgments and forming opinions about other people's characteristics and intentions.

Perception

Process of experiencing the world and making sense out of what you experience.

Halo Effect

The phenomenon where a positive impression in one area influences one's perception in other areas.