Analysis that addresses the question of whether a policy should be used is called ________ analysis.

If Bonnie can produce either 20 hats or 10 scarves in a month, and Phil can produce either 5 hats or 10 scarves in a month, then

A) Bonnie is more efficient at producing hats, compared to Phil. B) Bonnie is equally efficient at producing scarves, compared to Phil. C) both A and B above are true. D) none of the above are true.

Two nations have the following production capacity given their endowment of resources. Country A can produce 40 units of beer or 90 units of pizzas. Country B can produce 120 units of beer or 70 units of pizzas. Which of the following statements is most appropriate to decide how these countries should specialize?

A. Country B has an absolute advantage in both products. B. Country A has a comparative advantage in pizza and country B has a comparative advantage in beer. C. Country A has no comparative advantage and country B has a comparative advantage in beer. D. Country A has a comparative advantage in beer and country B has a comparative advantage in pizzas.