Tom and Jerry Have Two Tasks to Do All Day

question 55

Multiple Choice

Tom and Jerry have two tasks to do all day: make dishes and build fences.If Tom spends all day making dishes,he will have make 16 dishes.If he instead devotes his day to building fences,Tom will build 4 fences.If Jerry spends his day making dishes,he will make 14 dishes; if he spends the day building fences,he will build 7 fences.After looking at the production possibilities for both Tom and Jerry,we can surmise that:

• A) Tom has the absolute advantage in the production of both dishes and fences.
• B) Jerry has the absolute advantage in the production of both dishes and fences.
• C) Tom has the absolute advantage in the production of dishes and Jerry has the absolute advantage in fence production.
• D) Tom has the absolute advantage in the production of fences and Jerry has the absolute advantage in dish production.

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Definitions:

Call Provision

A clause in a bond's contract that allows the issuer to redeem the bond before its maturity date under specific conditions.

Retire Bonds

The process of paying off or redeeming bonds before or at maturity to eliminate debt obligations.

Investing

The act of allocating resources, often money, in the hope of generating an income or profit in the future.

Yield to Maturity

The total rate of return anticipated on a bond if it is held until the date it matures, considering all payments of principal and interest.