Which statement best describes the absolute advantage as shown in the graphs?
A)Pam has an absolute advantage in the production of both.
B)Jim has an absolute advantage in the production of both.
C)Jim has an absolute advantage in the production of pizzas,and Pam has an absolute advantage in the production of stromboli.
D)Pam has an absolute advantage in the production of pizzas,and Jim has an absolute advantage in the production of stromboli.
E)They both have an absolute advantage in the production of stromboli.

Question

Which statement best describes the absolute advantage as shown in the graphs? 
A)Pam has an absolute advantage in the production of both. 
B)Jim has an absolute advantage in the production of both. 
C)Jim has an absolute advantage in the production of pizzas,and Pam has an absolute advantage in the production of stromboli. 
D)Pam has an absolute advantage in the production of pizzas,and Jim has an absolute advantage in the production of stromboli. 
E)They both have an absolute advantage in the production of stromboli.

Quizplus · Accepted Answer

To determine who has an absolute advantage, we look at who can produce more of both goods in a given amount of time. From the graphs, we can see that Pam can produce 10 pizzas or 15 strombolis in an hour while Jim can produce 15 pizzas or 20 strombolis in an hour. Therefore, Jim has an absolute advantage in the production of pizzas, and Pam has an absolute advantage in the production of strombolis. So, the correct choice is D, Pam has an absolute advantage in the production of pizzas, and Jim has an absolute advantage in the production of stromboli.

Which Statement Best Describes the Absolute Advantage as Shown in the Graphs