If Jeremy Has an Absolute Advantage in Cooking and Margaret

question 53

Multiple Choice

If Jeremy has an absolute advantage in cooking and Margaret has an absolute advantage in cleaning,then:

• A)Jeremy has a comparative advantage in cooking and Margaret has a comparative advantage in cleaning.
• B)Jeremy has a comparative advantage in cleaning and Margaret has a comparative advantage in cooking.
• C)Margaret has a comparative advantage in cleaning,but we can conclude nothing about Jeremy.
• D)Jeremy has a comparative advantage in cooking,but we can conclude nothing about Margaret.
• E)we can conclude nothing about comparative advantage.

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Definitions:

Substitution Effect

The change in consumption patterns due to a relative change in prices leading consumers to substitute one product for another.

Derived Demand

The demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.

Wind Turbine Service Technicians

Professionals specialized in maintaining and repairing wind turbines to ensure their efficient operation.