Sven has a comparative advantage over Alice in cooking but not in doing the laundry.Which of the following must be true?
A) Sven must have an absolute advantage in both cooking and doing the laundry.
B) Sven has a lower opportunity cost in doing the laundry.
C) Sven has an absolute advantage in doing the laundry.
D) Alice must have an absolute advantage in cooking.
E) Sven must have a lower opportunity cost than Alice for cooking.
Correct Answer:
Verified
Q58: Figure 2-10 Q59: Figure 2-9 Q60: A country currently is using all its Q61: One kind of gain from specialization is Q62: All of the following,except one,help explain why Q64: Specialization of labor typically leads to higher Q65: According to the law of comparative advantage,individuals Q66: Economies organize according to the principle of Q67: If the labor force in an economy Q68: If Alicia limits the range of her
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents