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              PIZZAS made per hour              PIZZAS dilivered per hour

Corey                  12                                              6

Pat                      10                                            15


1.Refer to the figure above. According to the data, Corey has an absolute advantage in

A. the production of pizza.

B. neither production of pizza nor delivering pizza.

C. delivering pizza.

D. both production of pizza and delivering pizza.


2.Refer to the figure above. According to the data, Pat has an absolute advantage in

A. the production of pizza.

B. neither production of pizza nor delivering pizza.

C. delivering pizza.

D. both production of pizza and delivering pizza.


3.Refer to the figure above. Corey's opportunity cost of producing an extra pizza is delivering

______ pizzas.

A. 2

B. 3/2

C. 2/3

D. 1/2


4.Refer to the figure above. Corey's opportunity cost of delivering an extra pizza is producing

______ pizzas.

A. 6

B. 12

C. 2

D. 1/2


5.Refer to the figure above. Pat's opportunity cost of producing an extra pizza is delivering

______ pizzas.

A. 3

B. 2

C. 3/2

D. 2/3


6.Refer to the figure above. Pat's opportunity cost of delivering an extra pizza is producing

_____ pizzas.

A. 12

B. 10

C. 3/2

D. 2/3

7.Refer to the figure above. The comparative advantage for pizza production belongs to__________ and the comparative advantage for pizza delivery belongs to __________.

A. Corey; Corey

B. Pat; Pat

C. Pat; Corey

D. Corey; Pat

8.Based on their comparative advantages, Pat should specialize in _______ while Coreyshould specialize in _______

A. pizza delivery; pizza production

B. pizza production; pizza delivery

C. neither; both

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M9466998

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