Suppose that in the time it takes for him to bake a cake, Bob can sew 5 pairs of jeans. In the time it takes for Joe to bake a cake, he can sew 8 pairs of jeans day. In this example, who has the comparative advantage in baking a cake?
A) Bob
B) Joe
C) both Bob and Joe
D) neither Bob nor Joe

Question

Quizplus · Accepted Answer

Bob has the comparative advantage in baking a cake because he sacrifices fewer pairs of jeans (5) compared to Joe (8) when he bakes a cake.

Suppose That in the Time It Takes for Him to Bake