Saturday, July 2, 2011

John takes 10 minutes to iron a shirt and 20 minutes to type a paper

ECONOMICS

Multiple Choice

John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?

a.Harry has a comparative advantage in ironing.

b.Harry has a comparative advantage in typing.

c.Harry has an absolute advantage in typing.

d.Harry has an absolute advantage in ironing.

e.Neither can gain from specialization and exchange.

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