If Evan Has an Absolute Advantage in Cleaning and Bookkeeping

question 135

Multiple Choice

If Evan has an absolute advantage in cleaning and bookkeeping when compared to Gloria, then

• A)Evan must also have a comparative advantage in cleaning and bookkeeping
• B)Evan must have a comparative advantage in cleaning
• C)Evan must have a comparative advantage in bookkeeping
• D)Gloria has a comparative advantage in neither activity
• E)we can conclude nothing about comparative advantage

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Definitions:

Sales Volume

The total quantity of products or services sold by a company in a specified period, used as an indicator of business performance.

Profit Margin

a financial metric used to assess a company's profitability by dividing net income by net sales.

Specialty Products

Goods or services that are perceived as unique or high-value by consumers, often associated with specific buying criteria and loyalty.

Antiques

Items of high value due to their age, rarity, condition, utility, or personal emotional connection, often considered collectible or desirable for their historical significance.