Figure 3-5 These Graphs Illustrate the Production Possibilities Available for Dancing Shoes

Multiple Choice

Figure 3-5
These graphs illustrate the production possibilities available for dancing shoes to Fred and Ginger with 40 hours of labour.
-Refer to Figure 3-5. Who has a comparative or absolute advantage in what product?

A) Ginger has an absolute advantage in tap shoes, and Fred has a comparative advantage in ballet slippers.
B) Ginger has an absolute advantage in both goods, and Fred has a comparative advantage in neither good.
C) Ginger has an absolute advantage in ballet slippers, and Fred has a comparative advantage in tap shoes.
D) Ginger has an absolute advantage in neither good, and Fred has a comparative advantage in both goods.