Use the Following Scenario to Answer the Next Eight Questions

question 107

Multiple Choice

Use the following scenario to answer the next eight questions:
Karl and Pete produce cars and trucks. Karl can produce 10 cars per hour or 5 trucks per hour. Pete can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,which of the following is true?

• A) Pete has an absolute advantage in producing cars but not trucks.
• B) Pete has an absolute advantage in producing trucks but not cars.
• C) Pete has an absolute advantage in producing both goods.
• D) Pete has an absolute advantage in producing neither good.
• E) Karl has a comparative advantage in producing both goods.

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Definitions:

Characteristic

A distinguishing trait, quality, or property that defines or identifies something.

Common Name

A name by which a species is known to the general public, as opposed to its scientific or Latin name.

Trademark Infringement

An unauthorized use of a trademark or service mark on competing or related goods and services, leading to a likelihood of confusion.

Injunction

An order issued by a court that compels a person or entity to either take a certain action or stop doing something.