Asked by Jiwanjot Singh on May 14, 2024
Verified
If Sam can chop up more carrots per minute than Joe can,then:
A) Joe has an absolute advantage in carrot chopping.
B) Joe must have a comparative advantage in carrot chopping.
C) Sam has an absolute advantage in carrot chopping.
D) Sam must have a comparative advantage in carrot chopping.
E) we can conclude nothing about absolute advantage.
Absolute Advantage
A scenario in which a country can produce a particular good or service more effectively than another country with the same amount of resources.
Comparative Advantage
an economic principle that posits a country or entity can produce a particular good or service at a lower opportunity cost than its trading partners, leading to beneficial trade.
- Gain an understanding of the theory behind absolute and comparative advantage in economic dealings.
Verified Answer
VR
Vanessa RiquelmyMay 16, 2024
Final Answer :
C
Explanation :
Sam has an absolute advantage in carrot chopping because he can chop more carrots per minute than Joe can. Absolute advantage refers to the ability of an individual, firm, or country to produce more of a good or service than competitors using the same amount of resources.
Learning Objectives
- Gain an understanding of the theory behind absolute and comparative advantage in economic dealings.
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