Which of the following explains why someone with an absolute advantage in painting houses may NOT spend their time painting houses?
A) They may have a comparative advantage in painting houses, as well.
B) Even though they have the absolute advantage in painting houses, they still may not be very good at it.
C) In an efficient market, someone with an absolute advantage in painting houses will always spend their time painting houses.
D) They may be relatively better at something else than painting houses.

Question

Quizplus · Accepted Answer

Even though someone may have an absolute advantage in painting houses, they may be relatively better at something else. In this case, they may choose to allocate their time towards their area of comparative advantage instead of their absolute advantage.

Which of the Following Explains Why Someone with an Absolute