Figure 3-3

-Refer to Figure 3-3.Which of the following statements is correct?
A)Fred sacrifices 1 2/3 ballet slippers to produce 1 tap shoe; Ginger sacrifices 3/4 of a ballet slipper to produce 1 tap shoe; therefore, Fred has a comparative advantage in producing tap shoes.
B)Fred sacrifices 3/5 of a ballet slipper to produce 1 tap shoe; Ginger sacrifices 1 1/3 ballet slippers to produce 1 tap shoe; therefore, Fred has an absolute advantage in producing tap shoes.
C)Fred requires 4 hours to produce a tap shoe; Ginger requires 6 2/3 hours to produce a tap shoe; therefore, Fred has a comparative advantage in producing tap shoes.
D)Fred requires 4 hours to produce a tap shoe; Ginger requires 6 2/3 hours to produce a tap shoe; therefore, Fred has an absolute advantage in producing tap shoes.

Question

Figure 3-3
 
-Refer to Figure 3-3.Which of the following statements is correct?
A)Fred sacrifices 1 2/3 ballet slippers to produce 1 tap shoe; Ginger sacrifices 3/4 of a ballet slipper to produce 1 tap shoe; therefore, Fred has a comparative advantage in producing tap shoes. 
B)Fred sacrifices 3/5 of a ballet slipper to produce 1 tap shoe; Ginger sacrifices 1 1/3 ballet slippers to produce 1 tap shoe; therefore, Fred has an absolute advantage in producing tap shoes. 
C)Fred requires 4 hours to produce a tap shoe; Ginger requires 6 2/3 hours to produce a tap shoe; therefore, Fred has a comparative advantage in producing tap shoes. 
D)Fred requires 4 hours to produce a tap shoe; Ginger requires 6 2/3 hours to produce a tap shoe; therefore, Fred has an absolute advantage in producing tap shoes.

Quizplus · Accepted Answer

Fred requires fewer hours than Ginger to produce a tap shoe, indicating he has an absolute advantage in producing tap shoes.

Figure 3-3 -Refer to Figure 3-3.Which of the Following Statements Is Correct