The figures below depict the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. Refer to these figures to answer the next two questions.
-Which statement best describes the absolute advantage as shown in the graphs?
A) Pam has an absolute advantage in the production of both.
B) Jim has an absolute advantage in the production of both.
C) Jim has an absolute advantage in the production of pizzas, and Pam has an absolute advantage in the production of stromboli.
D) Pam has an absolute advantage in the production of pizzas, and Jim has an absolute advantage in the production of stromboli.
E) They both have an absolute advantage in the production of stromboli.
Correct Answer:
Verified
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