Figure 3-1
-Refer to Figure 3-1. What do the two producers have an absolute advantage in?
A) Paul has an absolute advantage in both wheat and corn.
B) Paul has an absolute advantage in wheat, and Cliff has an absolute advantage in corn.
C) Cliff has an absolute advantage in wheat, and Paul has an absolute advantage in corn.
D) Cliff has an absolute advantage in both wheat and corn.

Question

Figure 3-1 
-Refer to Figure 3-1. What do the two producers have an absolute advantage in?
A) Paul has an absolute advantage in both wheat and corn. 
B) Paul has an absolute advantage in wheat, and Cliff has an absolute advantage in corn. 
C) Cliff has an absolute advantage in wheat, and Paul has an absolute advantage in corn. 
D) Cliff has an absolute advantage in both wheat and corn.

Quizplus · Accepted Answer

Absolute advantage refers to the ability of a producer to produce more of a good with the same resources. Without the specific data from Figure 3-1, the choice indicates that Paul can produce more of both wheat and corn compared to Cliff.

Figure 3-1 -Refer to Figure 3-1. What Do the Two Producers Have