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(Exhibit: Determining Comparative Advantage) Daisy Has a Lower Opportunity Cost

Question 49

Multiple Choice

(Exhibit: Determining Comparative Advantage) Daisy has a lower opportunity cost for:
 Opportunity Cost of 1 Bread  Opportunity Cost of 1 Cake  Eric ( 4 loaves of bread =2 cakes ) 1/2 of a cake 2 loaves of bread  Daisy (5 loaves of bread =3 cakes ) 3/5 of a cake 12/3 loaves of bread \begin{array}{|l|l|l|}\hline & \text { Opportunity Cost of 1 Bread } & \text { Opportunity Cost of } 1 \text { Cake } \\\hline \text { Eric ( } 4 \text { loaves of bread }=2 \text { cakes }) & 1 / 2 \text { of a cake } & 2 \text { loaves of bread } \\\hline \text { Daisy }(5 \text { loaves of bread }=3 \text { cakes }) & 3 / 5 \text { of a cake } & 12 / 3 \text { loaves of bread } \\\hline\end{array}


A) baking bread.
B) baking a cake.
C) neither bread nor cake.
D) both bread and cake.

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