Asked by
Anusha Chowdary
on Nov 11, 2024
Verified
Hans can do 4 loads of laundry per hour,and he can type 6 pages per hour.Maria can do 12 loads of laundry per hour,and she can type 8 pages per hour.In any given amount of time,_____.
A) Maria has both an absolute and a comparative advantage in typing
B) Maria has both an absolute and a comparative advantage in doing laundry
C) Maria has a comparative advantage in both typing and doing laundry
D) Hans has both an absolute and a comparative advantage in typing
E) Hans has an absolute advantage in doing laundry
Absolute Advantage
The ability of a country or entity to produce a good or service more efficiently than its competitors, leading to greater output with the same input of resources.
Comparative Advantage
The ability of an entity to produce a good at a lower opportunity cost than another, leading to potential trade benefits.
Loads
Charges or fees that investors pay when buying or selling mutual funds, often used to compensate sales intermediaries.
- Acquire insight into the ideas of absolute and comparative advantage in the context of economic exchanges.
- Analyze scenarios to determine respective advantages in different tasks or activities.
Verified Answer
AY
Learning Objectives
- Acquire insight into the ideas of absolute and comparative advantage in the context of economic exchanges.
- Analyze scenarios to determine respective advantages in different tasks or activities.