If Leslie can produce two pairs of pants in an hour while Eva can make one pair an hour, then it must be the case that:
A) Leslie has a comparative advantage.
B) Leslie has an absolute advantage.
C) Eva has a comparative advantage.
D) Leslie has both comparative and absolute advantage.

Question

Quizplus · Accepted Answer

Leslie has an absolute advantage because she can produce more pairs of pants per hour than Eva. Comparative advantage is not determined by the number of goods produced but by the opportunity cost of production, which is not provided in the question.

If Leslie Can Produce Two Pairs of Pants in an Hour