Sia
Question
Macroeconomics
Posted 4 months ago
Tomer and Charlotte have the same resources and time. Tomer can either write 100 lines of code or process 20 reports, and Charlotte can either write 120 lines of code or process 20 reports.
Who has an absolute advantage in each thing?
Choose 1 answer:
(A) Tomer has an absolute advantage in both goods.
(B) Charlotte has an absolute advantage in writing lines of code; nobody has an absolute advantage in processing reports.
(c) Charlotte has an absolute advantage in writing code and Tomer has an absolute advantage in processing reports.
(D) Charlotte has an absolute advantage in both goods.
(E) Charlotte has an absolute advantage in writing code; both people have an absolute advantage in processing reports.
Sign in to unlock the answer
Answer from Sia
Posted 4 months ago
B
Key Concept
Absolute Advantage
Explanation
Absolute advantage refers to the ability of an individual or group to produce a good or service more efficiently than another, using the same amount of resources. In this case, Charlotte can write more lines of code than Tomer with the same resources, giving her an absolute advantage in coding. However, since both can process the same number of reports with the same resources, neither has an absolute advantage in report processing.
Not the question you are looking for? Ask here!
Enter question by text
Enter question by image
Upgrade to Asksia Pro
Join a AskSia's Pro Plan, and get 24/7 AI tutoring for your reviews, assignments, quizzes and exam preps.
Unlimited chat query usages
Strong algorithms that better know you
Early access to new release features
Study Other Question