Figure 3-5
-Refer to Figure 3-5. Ginger has a comparative advantage in
A)Ginger has a comparative advantage in tap shoes and Fred has a comparative advantage in ballet slippers.
B)Ginger has a comparative advantage in both goods and Fred has a comparative advantage in neither good.
C)Ginger has a comparative advantage in ballet slippers and Fred has a comparative advantage in tap shoes.
D)Ginger has a comparative advantage in neither good and Fred has a comparative advantage in both goods.

Question

Figure 3-5 
-Refer to Figure 3-5. Ginger has a comparative advantage in
A)Ginger has a comparative advantage in tap shoes and Fred has a comparative advantage in ballet slippers. 
B)Ginger has a comparative advantage in both goods and Fred has a comparative advantage in neither good. 
C)Ginger has a comparative advantage in ballet slippers and Fred has a comparative advantage in tap shoes. 
D)Ginger has a comparative advantage in neither good and Fred has a comparative advantage in both goods.

Quizplus · Accepted Answer

Ginger's opportunity cost of producing one pair of ballet slippers is 2 pairs of tap shoes, while Fred's opportunity cost of producing one pair of tap shoes is only 1/3 pairs of ballet slippers. Therefore, Ginger has a comparative advantage in producing ballet slippers and should specialize in producing them, while Fred has a comparative advantage in producing tap shoes and should specialize in producing them.

Figure 3-5 -Refer to Figure 3-5. Ginger Has a Comparative Advantage in Comparative