Sven Has a Comparative Advantage Over Alice in Cooking but Not

question 53

Multiple Choice

Sven has a comparative advantage over Alice in cooking but not in doing the laundry.Which of the following must be true?

• A) Sven must have an absolute advantage in both cooking and doing the laundry.
• B) Sven has a lower opportunity cost in doing the laundry.
• C) Sven has an absolute advantage in doing the laundry.
• D) Alice must have an absolute advantage in cooking.
• E) Sven must have a lower opportunity cost than Alice for cooking.

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Definitions:

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