If Elaine can produce more output from a set amount of resources than Jerry can,you know that ________ has a(n)________ advantage.
A) Elaine; comparative
B) Jerry; comparative
C) Elaine; absolute
D) Jerry; absolute
E) Elaine; normative

Question

Quizplus · Accepted Answer

If Elaine can produce more output from a set amount of resources than Jerry can, then Elaine has an absolute advantage. This is because she can produce more output than Jerry regardless of the resource amount available. Comparative advantage considers the opportunity cost of producing a good relative to producing other goods, so it is not relevant in this scenario. Normative advantage involves making value judgments, so it is also not applicable here.

If Elaine Can Produce More Output from a Set Amount