In an eight-hour day, Andy can produce either 24 loaves of bread ...

[nramada]

In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an eight-hour day, Bob can produce either 8 loaves of bread or 8 pounds of butter. Andy has a comparative advantage in the production of
 
  A) bread, while Bob has a comparative advantage in the production of butter.
  B) butter, while Bob has a comparative advantage in the production of bread.
  C) bread and neither has a comparative advantage in the production of butter.
  D) both bread and butter.

Question 2

When consumers' incomes increased 10 percent, the quantity of milk bought increased 5 percent. This result means
 
  A) the demand for milk is income elastic.
  B) milk is a necessity.
  C) milk is a luxury.
  D) milk is an inferior good.

[Kingjoffery]

Answer to Question 1

A

Answer to Question 2

B