Absolute and Comparative Advantage in Carrot Chopping

What is the difference between absolute advantage and comparative advantage?

Based on the data, if Sam can chop up more carrots per minute than Joe can, what can we conclude about absolute and comparative advantage?

Answer:

If Sam can chop up more carrots per minute than Joe can, then the correct answer is (b) Sam has an absolute advantage in carrot chopping.

Absolute advantage refers to the ability of an individual, in this case, Sam, to produce more output or perform a task more efficiently than another individual, Joe. Since Sam can chop up more carrots per minute than Joe, Sam clearly has an absolute advantage in carrot chopping.

Comparative advantage, on the other hand, refers to the ability to produce a good or service at a lower opportunity cost compared to another individual. The information provided in the question does not allow us to determine comparative advantage. It is possible that Joe may have a comparative advantage in another task or activity that is not specified.

Therefore, based on the given information, we can conclude that Sam has an absolute advantage in carrot chopping, but we cannot make any definitive conclusions about comparative advantage or Joe's skills in other tasks.

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