Table 3-4

-Refer to the table.Who has an absolute advantage in the production of each good
A)Alberta has an absolute advantage in birdhouses, and Manitoba has an absolute advantage in baskets.
B)Alberta has an absolute advantage in baskets, and Manitoba has an absolute advantage in birdhouses.
C)Alberta has an absolute advantage in neither good, and Manitoba has an absolute advantage in both goods.
D)Alberta has an absolute advantage in both goods, and Manitoba has an absolute advantage in neither good.

Question

Table 3-4
 
-Refer to the table.Who has an absolute advantage in the production of each good
A)Alberta has an absolute advantage in birdhouses, and Manitoba has an absolute advantage in baskets. 
B)Alberta has an absolute advantage in baskets, and Manitoba has an absolute advantage in birdhouses. 
C)Alberta has an absolute advantage in neither good, and Manitoba has an absolute advantage in both goods. 
D)Alberta has an absolute advantage in both goods, and Manitoba has an absolute advantage in neither good.

Quizplus · Accepted Answer

Alberta can produce 4 birdhouses or 6 baskets in one hour, while Manitoba can produce 1 birdhouse or 8 baskets in one hour. This means that Alberta has an absolute advantage in baskets since she can produce more baskets in one hour than Manitoba. On the other hand, Manitoba has an absolute advantage in birdhouses since he can produce more birdhouses in one hour than Alberta. Therefore, the correct answer is (B): Alberta has an absolute advantage in baskets, and Manitoba has an absolute advantage in birdhouses.

Table 3-4 -Refer to the Table.Who Has an Absolute Advantage in the Absolute