David takes 10 minutes to process a customer, and 20 minutes to stock the shelves. Danny takes 15 minutes to process a customer, and 15 minutes to stock the shelves. Which of the following statements is true?
A) Danny has a comparative advantage in processing customers and in stocking shelves.
B) David has a comparative advantage in processing customers but not in stocking shelves.
C) Danny has an absolute advantage in performing both tasks.
D) Danny has a comparative advantage in processing customers but not in stocking shelves.
E) David has an absolute advantage in performing both tasks.
Question 2
If the exchange rate rises as shown by the arrow in the figure above, the price of imports coming into the United States will be ________, Americans will supply ________ dollars in order to get the foreign exchange to purchase ________ imported goods
.
A) higher; more; more
B) lower; more; more
C) lower; fewer; more
D) lower; fewer; fewer
E) higher; fewer; more
The figure above shows supply curves of dollars in the foreign exchange market.
David Baltimore
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