Sunday, July 3, 2011

In one week, Mohammed can knit 5 sweaters or bake 240 cookies

ECONOMICS

Multiple Choice

In one week, Mohammed can knit 5 sweaters or bake 240 cookies. In one week, Tetah can knit 15 sweaters or bake 480 cookies. In this example,

a.Mohammed has the absolute and comparative advantage in both tasks

b.Tetah has the absolute and comparative advantage in both tasks

c.Mohammed has the absolute advantage in both tasks and the comparative advantage in knitting sweaters

d.Tetah has the absolute advantage in both tasks and the comparative advantage in knitting sweaters

e.Mohammed has the absolute advantage in both tasks and the comparative advantage in baking cookies

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