Sia
Question
Macroeconomics
Posted 10 months ago
Kim and Leah have the same amount of time and resources available. Kim can write either 10 articles or complete 5 worksheets. Leah can either write 3 articles or complete 9 worksheets.
Who has an absolute advantage in each thing?
Choose 1 answer:
(A) Leah has an absolute advantage in both goods.
(B) Nobody has an absolute advantage in either good.
(c) Kim has an absolute advantage in both goods.
(D) Kim has an absolute advantage in worksheets; Leah has an absolute advantage in writing articles.
(E) Kim has an absolute advantage in writing articles; Leah has an absolute advantage in worksheets.
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Answer from Sia
Posted 10 months ago
E
Key Concept
Absolute Advantage
Explanation
Absolute advantage refers to the ability of an individual or group to produce a good or service more efficiently than another, using the same amount of resources. In this case, Kim can produce more articles than Leah (10 vs. 3) with the same resources, so Kim has an absolute advantage in writing articles. Conversely, Leah can complete more worksheets than Kim (9 vs. 5), so Leah has an absolute advantage in completing worksheets.
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