Suppose that in the time it takes for him to bake a cake, Bob can produce sew 5 pairs of jeans. In the time it takes for Joe to bake a cake, he can produce sew 8 pairs of jeans day. In this example, who has the absolute advantage in baking a cake?
A) both Bob and Joe
B) Joe
C) Bob
D) There is insufficient information to answer this question.

Question

Quizplus · Accepted Answer

The problem does not provide information on the actual time it takes for each person to bake a cake, only their opportunity costs in terms of jeans. Therefore, we cannot determine who has the absolute advantage in baking a cake.

Suppose That in the Time It Takes for Him to Bake