Author Question: Consider two individuals, Artie and Deena, who produce wind chimes and sun dials. Artie's and ... (Read 111 times)

jasdeep_brar · **on:** Jun 30, 2018

Consider two individuals, Artie and Deena, who produce wind chimes and sun dials. Artie's and Deena's weekly productivity are shown in Table 3.4. Which of the following is TRUE?

A) Artie has a comparative advantage in producing wind chimes but not sun dials.
B) Artie has a comparative advantage in producing sun dials but not wind chimes.
C) Artie has a comparative advantage in producing both goods.
D) Artie does not have a comparative advantage in producing either good.

Question 2

If Project A has a cost of 2 and provides a benefit of 3, and Project B has a cost of 5 and provides a benefit of 8, which of the following statements is true?

A) A shift from Project A to Project B increases the net benefit by 1.
B) The net benefit of Project A is 5.
C) An individual can optimize by choosing Project B.
D) Project A has a higher net benefit than Project B.