Reference:
Figure SEQ Figure 2: Production Possibilities Frontier
-You and your friend, Terri, work in a bakery.You can produce more cookies and cakes than Terri.This means that

Question

Reference:
Figure SEQ Figure 2: Production Possibilities Frontier 
-You and your friend, Terri, work in a bakery.You can produce more cookies and cakes than Terri.This means that

Quizplus · Accepted Answer

Having an absolute advantage means being able to produce more of a good or service with the same amount of resources. Since you can produce more cookies and cakes than Terri, you have an absolute advantage in both goods. Comparative advantage, on the other hand, involves being able to produce a good at a lower opportunity cost, which is not described in the scenario.

Reference: Figure SEQ Figure 2: Production Possibilities Frontier