Figure 3-3

-Refer to Figure 3-3.Ginger has a comparative advantage in
A)tap shoes and Fred has a comparative advantage in ballet slippers.
B)both goods and Fred has a comparative advantage in neither good.
C)ballet slippers and Fred has a comparative advantage in tap shoes.
D)neither good and Fred has a comparative advantage in both goods.

Question

Figure 3-3
 
-Refer to Figure 3-3.Ginger has a comparative advantage in
A)tap shoes and Fred has a comparative advantage in ballet slippers. 
B)both goods and Fred has a comparative advantage in neither good. 
C)ballet slippers and Fred has a comparative advantage in tap shoes. 
D)neither good and Fred has a comparative advantage in both goods.

Quizplus · Accepted Answer

According to the figure, Ginger's opportunity cost of producing one pair of ballet slippers is lower than Fred's, while Fred's opportunity cost of producing one pair of tap shoes is lower than Ginger's. Therefore, Ginger has a comparative advantage in ballet slippers and Fred has a comparative advantage in tap shoes.

Figure 3-3 -Refer to Figure 3-3.Ginger Has a Comparative Advantage in