Question

Timothy and John both work 8 hours a day. Both Timothy and John can produce shoes or clothes, though at different rates. For Timothy, he can produce 2 pairs of shoes per hour or 4 units of clothes per hour. For John, he produces 1 pair of shoes per hour, or 5 units of clothes per hour. _____________ has the absolute advantage in producing shoes and _____________ has the absolute advantage in producing clothes.

Answer 1

Answer:

Timothy; John

Explanation:

A country has a absolute advantage in producing a commodity if it produces that commodity with less inputs than the other country.

For Timothy, he can produce:

2 pairs of shoes per hour or 4 units of clothes per hour

For John, he produces:

1 pair of shoes per hour, or 5 units of clothes per hour.

Therefore, the Timothy has a absolute advantage in producing shoes because he can produce more number of shoes in an hour than John.

And, the John has a absolute advantage in producing clothes because he can produce more units of clothes in an hour than Timothy.