-Refer to the table. Who has an absolute advantage in the production of each good?
A) Summer has an absolute advantage in sleds, and Winter has an absolute advantage in beach balls.
B) Summer has an absolute advantage in beach balls, and Winter has an absolute advantage in sleds.
C) Summer has an absolute advantage in neither good, and Winter has an absolute advantage in both goods.
D) Summer has an absolute advantage in both goods, and Winter has an absolute advantage in neither good.

Question

-Refer to the table. Who has an absolute advantage in the production of each good?
A) Summer has an absolute advantage in sleds, and Winter has an absolute advantage in beach balls. 
B) Summer has an absolute advantage in beach balls, and Winter has an absolute advantage in sleds. 
C) Summer has an absolute advantage in neither good, and Winter has an absolute advantage in both goods. 
D) Summer has an absolute advantage in both goods, and Winter has an absolute advantage in neither good.

Quizplus · Accepted Answer

Summer can produce 1 sled with 1 hour of labor, while Winter can produce 1 sled with 2 hours of labor. Summer can produce 1 beach ball with 2 hours of labor, while Winter can produce 1 beach ball with 3 hours of labor. Therefore, Summer has an absolute advantage in the production of sleds, and Winter has an absolute advantage in the production of beach balls.

-Refer to the Table