Tom and Jerry Have Two Tasks to Do All Day

question 136

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 conclude that:

• A) Tom has the comparative advantage in dish production.
• B) Jerry has the comparative advantage in dish production.
• C) Tom has the comparative advantage in fence production.
• D) No comparative advantage exists.

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Definitions:

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An individual or entity that has been authorized to use a credit card and is responsible for repaying the amount borrowed plus any interest accrued.

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