Question

Aanand can either build 6 models or prepare 4 experiments, and Pam can either build 9 models or prepare 6 experiments. Aanand and Pam have identical time and resources available. Who has an absolute advantage in building models and who has an absolute advantage in preparing experiments?

1) Aanand has an absolute advantage in building models and Pam has an absolute advantage in preparing experiments.
2) Pam has an absolute advantage in building models and Aanand has an absolute advantage in preparing experiments.
3) Pam has an absolute advantage in building models; both people have an absolute advantage in preparing experiments.
4) Aanand has an absolute advantage in both goods.
5) Pam has an absolute advantage in both building models and preparing experiments.

Answer 1

Pam has an absolute advantage in both building models and preparing experiments because she can produce more of each compared to Aanand given the same time and resources.

Step-by-step explanation:

Absolute advantage is a key concept when comparing the productivity of different individuals or entities. Looking at the information provided, Aanand can build 6 models or prepare 4 experiments, while Pam can build 9 models or prepare 6 experiments. Given identical time and resources, Pam can build more models than Aanand, and she can also prepare more experiments. Therefore, Pam has the absolute advantage in both building models and preparing experiments.

In this scenario, direct answer refers to choosing the correct option based on the calculations of how many models or experiments each individual can complete. A clear understanding and application of key economic principles, such as absolute advantage, are essential in this context. By considering the number of products that can be produced, it's evident who can achieve more in the same amount of time or with the same resources.

The notion of absolute advantage often arises in studying economic principles and trade, where it's crucial to determine the most efficient producers. Although Aanand is productive, Pam's higher productivity in both activities clearly shows who has the upper hand in this economic comparison, leading us .