The fraction, or percentage, of total income which is consumed is called the:

If Xavier can produce sandwiches at a lower opportunity cost than Kimani, then

a. Xavier has a comparative advantage in the production of sandwiches. b. Kimani has a comparative advantage in the production of sandwiches. c. Xavier should not produce sandwiches. d. Xavier is capable of producing more sandwiches than Kimani in a given amount of time.

Which of the following are most likely substitute goods?

A. peanut butter and jelly B. cooking oil and butter C. pizza and beer D. trucks and gasoline