Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan has the comparative advantage in sandwiches, but Tracy has the absolute advantage in sandwiches.
B. Dan has the comparative and absolute advantage in sandwiches.
C. Dan has the comparative advantage in smoothies, but Tracy has the absolute advantage in smoothies.
D. Dan has the comparative and absolute advantage in smoothies.
Answer: B
You might also like to view...
The Civil Rights Act of 1964 in the United States led to _____
a. the introduction of the concept of discrimination. b. complete elimination of discrimination from the labor force. c. the creation of equal opportunities for men and women. d. the creation of equal opportunities for the members of different races. e. the establishment of a much clearer definition of discrimination.
The belief that education makes a person more productive and thereby raises his or her wage is referred to as the
a. signaling view of education. b. natural-ability view of education. c. unmeasured-variables view of education. d. human-capital view of education.