Al and Bill Are the Only Workers in a Small

question 11

Multiple Choice

Al and Bill are the only workers in a small factory that makes geegaws and doodads.Al can make 6 geegaws per hour or 18 doodads per hour.Bill can make 3 geegaws per hour or 12 doodads per hour.Assuming that neither of them finds one task more odious than the other,

• A)Al has a comparative advantage in producing geegaws and Bill has a comparative advantage in producing doodads.
• B)Bill has a comparative advantage in producing geegaws and Al has a comparative advantage in producing doodads.
• C)Al has a comparative advantage in producing both geegaws and doodads.
• D)Bill has a comparative advantage in producing both geegaws and doodads.
• E)both have a comparative advantage in producing doodads.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place mostly during the 1930s, starting in the United States following the stock market crash of 1929 and leading to widespread unemployment, severe deflation, and significant declines in economic output.

Herbert Hoover

The 31st President of the United States, serving from 1929 to 1933, best known for his leadership during the early years of the Great Depression.

Division Of Labor

The provision of specialized jobs.

Moving Assembly Line

A moving assembly line is a manufacturing process that involves the assembly of products in a sequential manner, with the workpiece moving along a line of stationary workers or machines.