Hank Requires 1 Hour to Cut the Grass and 3

question 34

Multiple Choice

Hank requires 1 hour to cut the grass and 3 hours to clean the house. His sister Holly requires 1 hour to cut the grass and 4 hours to clean the house. Which of the following statements is true?

• A) Hank has a lower opportunity cost of cutting the grass.
• B) Holly has a comparative advantage in cutting the grass.
• C) Hank has a comparative advantage in both cutting the grass and cleaning the house.
• D) Hank has an absolute advantage in both cutting the grass and cleaning the house.
• E) Hank and Holly both have a comparative advantage in cutting the grass.

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