Figure 3-14
Arturo's Production Possibilities Frontier
Dina's Production Possibilities Frontier
-Refer to Figure 3-14.Arturo has an absolute advantage in the production of
A)burritos and a comparative advantage in the production of tacos.
B)burritos and a comparative advantage in the production of burritos.
C)neither good and a comparative advantage in the production of tacos.
D)neither good and a comparative advantage in the production of burritos.

Question

Figure 3-14
Arturo's Production Possibilities Frontier
Dina's Production Possibilities Frontier  
-Refer to Figure 3-14.Arturo has an absolute advantage in the production of
A)burritos and a comparative advantage in the production of tacos. 
B)burritos and a comparative advantage in the production of burritos. 
C)neither good and a comparative advantage in the production of tacos. 
D)neither good and a comparative advantage in the production of burritos.

Quizplus · Accepted Answer

Arturo's PPF shows that he can produce both tacos and burritos at a higher quantity than Dina. Therefore, he has an absolute advantage in both goods. However, in terms of comparative advantage, Arturo should focus on producing burritos as he has a lower opportunity cost of producing them, meaning he would have to give up less tacos to produce one burrito compared to Dina.

Figure 3-14 Arturo's Production Possibilities Frontier