Figure 3-24
The production possibilities frontiers below show how much Bob and Betty can each produce in 8 hours of time.

-Refer to Figure 3-24.Betty has
A)an absolute and comparative advantage producing good x.
B)an absolute but not a comparative advantage producing good x.
C)a comparative but not an absolute advantage producing good x.
D)neither a comparative nor an absolute advantage producing good x.

Question

Figure 3-24
The production possibilities frontiers below show how much Bob and Betty can each produce in 8 hours of time.

-Refer to Figure 3-24.Betty has
A)an absolute and comparative advantage producing good x. 
B)an absolute but not a comparative advantage producing good x. 
C)a comparative but not an absolute advantage producing good x. 
D)neither a comparative nor an absolute advantage producing good x.

Quizplus · Accepted Answer

Betty has an absolute advantage if she can produce more of good x than others with the same resources, but she may not have a comparative advantage if her opportunity cost of producing good x is higher than others.

Figure 3-24 the Production Possibilities Frontiers Below Show How Much Bob and Bob