Figure 3-4
-Refer to Figure 3-4. Which of the following is correct?
A)Ben has a comparative advantage in wine, and Jerry has an absolute advantage in both goods.
B)Ben has a comparative advantage in beer, and Jerry has an absolute advantage in both goods.
C)Ben has a comparative advantage in beer, and Jerry has an absolute advantage in wine.
D)Ben has a comparative advantage in wine, and Jerry has an absolute advantage in beer.

Question

Figure 3-4  
-Refer to Figure 3-4. Which of the following is correct?
A)Ben has a comparative advantage in wine, and Jerry has an absolute advantage in both goods. 
B)Ben has a comparative advantage in beer, and Jerry has an absolute advantage in both goods. 
C)Ben has a comparative advantage in beer, and Jerry has an absolute advantage in wine. 
D)Ben has a comparative advantage in wine, and Jerry has an absolute advantage in beer.

Quizplus · Accepted Answer

Ben can produce more wine than Jerry with the same amount of resources, and Jerry can produce more beer than Ben with the same amount of resources.