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What term applies when one option is chosen from among several possibilities?
a)Opportunity cost
b)Absolute advantage
c)Comparative advantage
d)Lost possibilities
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Farmer John has a pistachio farm. It takes him 5 hours worth of work to harvest 1 pound of nuts. Farmer Rick also has a pistachio farm. It takes him 10 hours worth of work to harvest 1 pound of nuts. Finally, Farmer Erica owns a third pistachio farm. She can harvest 1 pound of nuts in 2 hours. Who has the absolute advantage in this example? a)Farmer Erica b)Farmer Rick c)Farmer John d)Unclear
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