Multiple Choice
Which of the following describes comparative advantage?
A) Jane can type 50 words per minute, and Joe can type 60 words per minute.
B) Firm A can produce a good at a cost of $3 a unit, and Firm B can produce the same good at a cost of $4 a unit.
C) Bill can read one book in a week, but it takes Jeannie 10 days to read the same book.
D) Firm A can produce 4 boxes of cereal in a day, and Firm B can produce 5 boxes of cereal in a day.
E) To produce a basket of wheat, Farmer John must give up growing 2 baskets of corn, whereas Farmer Ben must give up 3 baskets of corn to produce a basket of wheat.
Correct Answer:
Verified
Correct Answer:
Verified
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