An economy has two workers, Paula and Ricardo. Every day they work, Paula can produce 4 computers or 16 shirts, and Ricardo can produce 6 computers or 12 shirts. What is the most of each good that can be produced each day if each worker fully specializes according to his/her comparative advantage?

A. 8 computers and 22 shirts
B. 5 computers and 14 shirts
C. 4 computers and 12 shirts.
D. 6 computers and 16 shirts

Answer: D

Economics

You might also like to view...

Of the following OECD countries, which has the best breast cancer and prostate cancer survival rates?

A) the United Kingdom B) Japan C) Canada D) the United States

Economics

Consider a country Atlantica, using dollars ($) as its currency. If this country sets a price for gold, and then issues currency such that the amount in circulation is equivalent to the value of gold held in reserve, it is said to be following:

a. a gold exchange standard. b. a gold standard. c. a reserve currency standard. d. a crawling peg standard. e. a currency board standard.

Economics