Consider two individuals, Nigel and Mia, who produce hair pins and bandanas. Nigel's and Mia's hourly productivity are shown in Table 3.3. Which of the following is TRUE?
A) Nigel has both an absolute and comparative advantage in bandana production.
B) Nigel has both an absolute and comparative advantage in hair pin production.
C) Nigel has neither an absolute nor comparative advantage in hair pin production.
D) Nigel has neither an absolute nor a comparative advantage in bandana production.
Question 2
Firms consider the ________ wage when considering whether to hire additional units of labor.
A) minimum B) real C) normal D) nominal
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