Final answer:
The statement is incorrect because it fails to consider comparative advantage, which is about producing goods at a lower opportunity cost, rather than just producing more. The correct perspective is to assess each individual's comparative advantage to optimize production efficiency.
Step-by-step explanation:
The statement "Whether Blake should make pizza or wings depends on which good he can make more of" is incorrect because what matters is not just the quantity one can produce but where one has a comparative advantage. The concept of comparative advantage refers to the efficiency of producing a good at a lower opportunity cost than another producer, not just the absolute quantity produced. Therefore, the correct answer is: 2) What matters is not what Blake can make more of but the comparative advantage for each producer.
For example, if Maria and Charlie work at a coffee shop and Maria can make more sandwiches and lattes than Charlie, she has an absolute advantage. However, if Charlie's opportunity cost of making sandwiches is lower than Maria's, even if he produces fewer sandwiches, he should specialize in sandwiches, and Maria should focus on lattes if her opportunity cost for lattes is lower. This specialization allows each person to focus on what they're best at relative to the other, leading to a more efficient allocation of their time and resources.