ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Suppose that in one week Sam can knit 5 sweaters or make 4 blankets and Rob can knit 10 sweaters or make 6 blankets. Which of the following is true?
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Sam has an absolute advantage in making blankets
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Sam has neither a comparative nor an absolute advantage in knitting sweaters or making blankets
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Sam has a comparative advantage in making blankets
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Sam has a comparative advantage in knitting sweaters
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Explanation:
Detailed explanation-1: -Suppose that in one week Sam can knit 5 sweaters or make 4 blankets and Rob can knit 10 sweaters or make 6 blankets. What is true? Sam has a comparative advantage in making blankets.
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