Don Can Produce 10 Pens or 20 Pencils in One

question 125

Multiple Choice

Don can produce 10 pens or 20 pencils in one hour while Bob can produce 5 pencils or 15 pens in one hour.Which of the following statements is correct?

• A)Don has an absolute advantage over Bob in the production of pencils and Bob in the production of pens
• B)Bob has an absolute advantage over Don in the production of pencils
• C)Bob has a comparative advantage over Don in the production of pens
• D)Don has a comparative advantage over Bob in the production of pens
• E)Don does not have a comparative advantage in the production of either good

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Definitions:

Functionally Autonomous Motives

Refers to the idea that certain behaviors or motives can become independent from their original causes and continue to be pursued for their own sake.

Personality

The combination of character, behavioral, temperamental, emotional, and mental traits that define an individual's distinctive patterns of thinking, feeling, and acting.

Separation

Separation refers to the process or state of being apart from others, which can have physical or emotional dimensions.

Reliable Information

Data or knowledge that is consistently true and can be depended upon for accuracy.