These figures illustrate the production possibilities available to Barney and Betty with 8 hours of labor in their baker
Figure 3-4

-Refer to Figure 3-4.Barney has a comparative advantage in
A)both goods and Betty has a comparative advantage in neither good.
B)loaves of bread and Betty has a comparative advantage in pies.
C)neither good and Betty has a comparative advantage in both goods.
D)pies and Betty has a comparative advantage in loaves of bread.

Question

These figures illustrate the production possibilities available to Barney and Betty with 8 hours of labor in their baker
Figure 3-4
 
-Refer to Figure 3-4.Barney has a comparative advantage in
A)both goods and Betty has a comparative advantage in neither good. 
B)loaves of bread and Betty has a comparative advantage in pies. 
C)neither good and Betty has a comparative advantage in both goods. 
D)pies and Betty has a comparative advantage in loaves of bread.

Quizplus · Accepted Answer

According to the graph, Barney can produce either 24 loaves of bread or 12 pies in 8 hours, while Betty can produce either 16 loaves of bread or 8 pies in 8 hours. Since Barney can produce more pies than Betty in the same amount of time, he does not have a comparative advantage in pies. However, since Betty can produce more loaves of bread than Barney in the same amount of time, she has a comparative advantage in loaves of bread. Therefore, the best choice is D - pies and Betty has a comparative advantage in loaves of bread.

These Figures Illustrate the Production Possibilities Available to Barney and Betty