Suppose Monica Has a Comparative Advantage in Baking and George

question 76

Multiple Choice

Suppose Monica has a comparative advantage in baking and George has a comparative advantage in sewing.What can be concluded regarding absolute advantage?  

• A) Monica must have an absolute advantage in baking, but nothing can be concluded about absolute advantage. 
• B) Monica must have an absolute advantage in baking. 
• C) George must have an absolute advantage in sewing. 
• D) Monica and George have equal absolute advantages in producing both products.

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Definitions:

Capacity

The maximum amount that something can contain or produce, or the ability to perform, understand, or absorb something.

Sensory Memory

The shortest-term element of memory, which allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Stimuli

External events or occurrences that can elicit responses from sensory organs, leading to a reaction or response.

Moment

A brief period of time or a specific point in time.