Use the Following Scenario to Answer the Next Four Questions

question 12

Multiple Choice

Use the following scenario to answer the next four questions:
RayRay and Andrew produce baseballs and golf balls. RayRay can produce six baseballs per hour or four golf balls per hour. Andrew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,which of the following is true?

• A) RayRay has both an absolute and a comparative advantage in baseball production.
• B) RayRay has both an absolute and a comparative advantage in golf ball production.
• C) RayRay has neither an absolute nor a comparative advantage in baseball production.
• D) RayRay has neither an absolute nor a comparative advantage in golf ball production.
• E) Andrew has both an absolute and a comparative advantage in baseball production.

Calculate the percentage increase or decrease in prices or costs.

Understand the concept of Consumer Price Index (CPI) and its applications in real life.

Calculate the CPI and understand its implications on purchasing power and inflation.

Apply the concept of purchasing power to determine salary adjustments based on CPI changes.

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Definitions:

Social Loafing

The tendency of individuals to exert less effort when working in a group than when working alone.

Unique Contribution

An original addition, idea, or improvement that an individual or group provides to a particular field or body of work.

Social Loafing

The phenomenon where individuals exert less effort to achieve a goal when they work in a group as opposed to when they work alone.

Task Poorly

The act of performing or completing a given task with substandard quality or effort.