Mark can make 3 tables and 1 chair in a day while John can make 4 tables and 1 chair in a day. Which of the following is true?
A) Mark has a comparative advantage in making tables.
B) Mark has an absolute advantage in making tables.
C) John has an absolute advantage in making tables.
D) John has a comparative advantage in making chairs.
Question 2
Tom is a U.S. citizen. He took up a job and moved to the U.K. His income will lead to a(n) ________.
A) decrease in the GDP of U.K. B) increase in the GNP of U.K.
C) increase in the GDP of U.S. D) increase in the GNP of U.S.
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