Question

Read the following scenario and determine who has the absolute advantage and who has the comparative advantage.
Ruth and Sam are roommates. Ruth is not only an amazing chef, but she's also exceptionally fast at cleaning. However, Ruth is always too tired after cleaning to cook. Sam, on the other hand, is a mess in the kitchen, and while she can clean speedily, can't clean as fast as Ruth. However, she can often get the cleaning done in the time it takes Ruth to cook a meal.
A. Ruth has an absolute advantage in cleaning, and Sam has an absolute advantage in cooking.
B. Ruth has an absolute advantage in both cleaning and cooking, but Sam has a comparative advantage in cleaning.
C. Sam has a comparative advantage in cleaning, and Ruth has a comparative advantage in cooking.
D. Sam has a comparative advantage in cooking, and Ruth has a comparative advantage in cleaning.

Answer 1

The best answer for this comparison between roommates Sam and Ruth would be option B: Ruth has an absolute advantage in both cleaning and cooking, but Sam has a comparative advantage in cleaning. As you can see, based on the description above, it says that in cooking, Ruth is an amazing chef, whereas Sam is a mess in the kitchen. On the other hand, Ruth can also clean really fast, and Sam too but Sam cleans not as fast as Ruth does.