Martha and Dave like to make identical tacos and cakes. The time it takes Martha and Dave to make tacos and cakes is given in the table below.
\begin{tabular}{lll}
& Martha & Dave \
\hline Time to make a taco & 10 minutes & 15 minutes \
Time to make a cake & 20 minutes & 30 minutes
\end{tabular}

Which person has an absolute advantage in the production of tacos, and which person has an absolute advantage in the production of cakes?

Choose 1 answer:
(A) Both Martha and Dave have an absolute advantage in producing both goods.
(B) Dave has an absolute advantage in producing both goods.
(c) Neither Dave nor Martha has an absolute advantage at producing either good.
(D) Martha has an absolute advantage in tacos; Dave has an absolute advantage in cakes.
(E) Martha has an absolute advantage in producing both goods.

Question

Martha and Dave like to make identical tacos and cakes. The time it takes Martha and Dave to make tacos and cakes is given in the table below.
\begin{tabular}{lll} 
& Martha & Dave \
\hline Time to make a taco & 10 minutes & 15 minutes \
Time to make a cake & 20 minutes & 30 minutes
\end{tabular}

Which person has an absolute advantage in the production of tacos, and which person has an absolute advantage in the production of cakes?

Choose 1 answer:
(A) Both Martha and Dave have an absolute advantage in producing both goods.
(B) Dave has an absolute advantage in producing both goods.
(c) Neither Dave nor Martha has an absolute advantage at producing either good.
(D) Martha has an absolute advantage in tacos; Dave has an absolute advantage in cakes.
(E) Martha has an absolute advantage in producing both goods.

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Absolute Advantage: Absolute advantage refers to the ability of a person or country to produce a good more efficiently (i.e., using fewer resources or less time) than another person or country. ‖ ‖ b ⋮ Time Comparison for Tacos: Martha takes 10 minutes to make a taco, while Dave takes 15 minutes. Since 10 minutes is less than 15 minutes, Martha has an absolute advantage in producing tacos. ‖ ‖ c ⋮ Time Comparison for Cakes: Martha takes 20 minutes to make a cake, while Dave takes 30 minutes. Since 20 minutes is less than 30 minutes, Martha has an absolute advantage in producing cakes. ‖ ∻Answer∻ ⚹ Martha has an absolute advantage in producing both goods. ⚹ ∻Key Concept∻ ⚹ Absolute Advantage ⚹ ∻Explanation∻ ⚹ Absolute advantage is determined by comparing the time taken by each person to produce the same good. The person who takes less time has the absolute advantage. In this case, Martha takes less time than Dave to produce both tacos and cakes, giving her the absolute advantage in both goods. ⚹◊What is the opportunity cost for Martha and Dave to make tacos and cakes?⍭ Generate me a similar question◊

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