If Evan has an absolute advantage in cleaning and bookkeeping when compared to Gloria, then
A)Evan must also have a comparative advantage in cleaning and bookkeeping
B)Evan must have a comparative advantage in cleaning
C)Evan must have a comparative advantage in bookkeeping
D)Gloria has a comparative advantage in neither activity
E)we can conclude nothing about comparative advantage

Question

Quizplus · Accepted Answer

Absolute advantage refers to the ability to perform a task more efficiently than another, while comparative advantage is about having a lower opportunity cost. Having an absolute advantage does not necessarily mean having a comparative advantage.

If Evan Has an Absolute Advantage in Cleaning and Bookkeeping