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. What does each of the two producers have an absolute advantage in?

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