Comparative and Absolute Advantage

Question 1

Absolute advantage is best defined as:

Revolt · Accepted Answer

being able to produce more efficiently than a competitor.

Question 2

Riley spent on resources per car washed.

Revolt · Accepted Answer

$3

Question 3

Sean spent on resources per car washed.

Revolt · Accepted Answer

$4

Question 4

Jake spent on resources per car washed.

Revolt · Accepted Answer

$8

Question 5

has the absolute advantage because he washes cars most efficiently.

Revolt · Accepted Answer

Riley

Question 6

What is the difference between comparative advantage and absolute advantage?

Revolt · Accepted Answer

Comparative advantage measures opportunity cost and absolute advantage measures efficiency.

Question 7

has the comparative advantage in making guitars.

Revolt · Accepted Answer

Annie’s Music

Question 8

has the comparative advantage in making violins.

Revolt · Accepted Answer

The Music Factory

Question 9

In the previous example, Duke's and Beverage King were efficient when they specialized.

Revolt · Accepted Answer

more

Question 10

Duke's chose to specialize in the production of tea because it is at it.

Revolt · Accepted Answer

more efficient

Comparative and Absolute Advantage Answers