Asked by
Mikayla Shinkan
on Dec 16, 2024
Verified
In one week,Mohammed can knit 5 sweaters or bake 240 cookies.In one week,Aisha can knit 15 sweaters or bake 480 cookies.Which of the following is correct?
A) Mohammed has an absolute and comparative advantage in both tasks.
B) Aisha has an absolute and comparative advantage in both tasks.
C) Mohammed has an absolute advantage in both tasks and a comparative advantage in knitting sweaters.
D) Aisha has an absolute advantage in both tasks and a comparative advantage in knitting sweaters.
E) Mohammed has an absolute advantage in both tasks and a comparative advantage in baking cookies.
Absolute Advantage
A condition in which a country, individual, or company can produce a specific good at a lower cost in resources than another.
Comparative Advantage
The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.
Knitting
The craft or action of creating fabric by interlocking loops of yarn using needles.
- Comprehend the principle of absolute and comparative advantage within economic interactions.
- Evaluate scenarios to ascertain their particular advantages across different tasks or activities.
Verified Answer
KK
Learning Objectives
- Comprehend the principle of absolute and comparative advantage within economic interactions.
- Evaluate scenarios to ascertain their particular advantages across different tasks or activities.