10
QuizMultiple Choice

Comparative and Absolute Advantage

Question 10 • 2102320-Economics HONORS - Edgenuity Teacher

This table shows the number of cookies several bakeries sell each day.Bakery Number of Cookies Sold Mrs. Track’s 90 Chips 100 The Bakeshop 75 Uncle John’s 125 All else being equal, which bakery has the absolute advantage?

Answer
A
Mrs. Track’s
B
Chips
C
The Bakeshop
D
Uncle John’s

Explanation

Absolute advantage means producing more of a good than the other producers, using the same time or resources. Uncle John’s sells 125 cookies per day, more than Chips (100), Mrs. Track’s (90), and The Bakeshop (75), so Uncle John’s has the absolute advantage.

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