Table 2-19 Table 2-19 Shows the Output Per Month of Month

question 245

Multiple Choice

Table 2-19
Table 2-19 shows the output per month of two people, Wilma and Betty. They can either devote their time to making marble statues or making marble benches.
-Refer to Table 2-19. Which of the following statements is true?

• A) Wilma has a comparative advantage in making both products.
• B) Betty has a comparative advantage in making both products.
• C) Betty has a comparative advantage in making statues and Wilma in making benches.
• D) Betty has a comparative advantage in making benches and Wilma in making statues.

Calculate and analyze the selling price and yield rates of bonds.

Calculate the effects of population changes and interest rates on financial markets.

Apply financial functions on a calculator to solve complex financial problems.

Evaluate and compare different financial investment options.

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Definitions:

Total Surplus

The sum of consumer surplus and producer surplus, representing the total benefit to society from the production and sale of a good or service.

External Benefits

Positive effects of a production or consumption activity on third parties not directly involved in the transaction, leading to social or economic benefits.

Total Surplus

The sum of consumer and producer surplus, representing the total net benefit to society from a market transaction.

Socially Efficient Quantity

The level of production of a good or service that results in the optimal combination of economic efficiency and social welfare.