Table 2-6
Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making wagons or making tricycles.
-Refer to Table 2-6.Which of the following statements is true?
A)Lucy has a comparative advantage in making both products.
B)James has a comparative advantage in making both products.
C)Lucy has a comparative advantage in making wagons and James in making tricycles.
D)Lucy has a comparative advantage in making tricycles and James in making wagons.

Question

Table 2-6
  Table 2-6 shows the output per week of two people,James and Lucy.They can either devote their time to making wagons or making tricycles.
-Refer to Table 2-6.Which of the following statements is true?
A)Lucy has a comparative advantage in making both products. 
B)James has a comparative advantage in making both products. 
C)Lucy has a comparative advantage in making wagons and James in making tricycles. 
D)Lucy has a comparative advantage in making tricycles and James in making wagons.

Quizplus · Accepted Answer

Comparative advantage is determined by who has the lower opportunity cost in producing a good. Without seeing Table 2-6, the correct answer is inferred based on the statement that Lucy has a comparative advantage in making wagons and James in making tricycles, suggesting that each can produce their respective goods at a lower opportunity cost than the other.

Table 2-6 Table 2-6 Shows the Output Per Week of Week