Question

If Jane can produce 3 pairs of shoes per hour, while Bob can produce 2, then ______ has a(n) ______ advantage in producing shoes. Select one: a. Jane; absolute b. Jane; comparative c. Bob; absolute d. Bob; comparative

Answer 1

Answer: Option A

Step-by-step explanation:

Jane has an absolute advantage than Bob. Absolute advantage than Bob as she can produce one pair of shoes additionally in the same given time. Here the absolute advantage is that production is done at a faster rate.

Absolute advantage means in comparison with the competitors one can give better output with same amount of resources allocated. Comparative advantage means the lowest opportunity cost in producing a product. These two concepts are used by countries to decide on which product needs to be produced.