Question
1. Faisal is gathering items to donate to a local charity thrift shop, including an old backpack. as he takes the items out, his suite
1. Faisal is gathering items to donate to a local charity thrift shop, including an old backpack. as he takes the items out, his suite mate kendrick asks if he could have the backpack. kendrick offers Faisal one of his energy drinks (worth $6) in exchange, which Faisal happily access. Faisal has achieved a producer surplus of
A. $0, since he was just going to give the backpack away
B. $3 because Faisal and kendrick benefited equally from the $6 transaction
C. $20 because that is what the backpack was likely worth.
D. $6, the value of the energy drink received
2. In canada, the average worker can produce 10 computers or 6 cars a year. in the United States, the average worker can produce 12 computers or 10 cars a year. based on the given information, which statement is correct?
A. Canada has a comparative advantage in the production of cars
B. the United States has an absolute advantage in both goods, and a comparative advantage in producing cars.
C. The United States has a comparative advantage in producing computers
D. Canada has an absolute advantage in producing both goods.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started