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 advantage in each good?
A) Ginger has a comparative advantage in tap shoes, and Fred has a comparative advantage in ballet slippers.
B) Ginger has a comparative advantage in both goods, and Fred has a comparative advantage in neither good.
C) Ginger has a comparative advantage in ballet slippers, and Fred has a comparative advantage in tap shoes.
D) Ginger has a comparative advantage in neither good, and Fred has a comparative advantage in both goods.
Correct Answer:

Verified
Correct Answer:
Verified
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