Ed and wendy decide to make extra money working by painting names on coffee mugs and making sketches. ed can paint 6 mugs or draw 2 sketches per hour. wendy can paint 8 mugs or make 3 sketches per hour. wendy has

a. an absolute advantage over ed.
b. greater natural resources than ed.
c. more specialized production than ed.
d. a comparative advantage over ed.

The correct answer is the option A: an absolute advantage over Ed.

Explanation:

To begin with, the concept of absolute advantage established by Adam Smith in his famous book The Wealth Of Nations of 1776 refers to the ability of producing more of a good in comparison with other competitors that have the same resources. Moreover, the principle states that the person or nation that has absolute advantage over the other is the one that produces a greater quantity of the good or service than the other party.  

Secondly, it is understandable that in the case where Wendy can paint more mugs or make more sketches per hour with the same resources than Ed, then Wendy has an absolute advantage over Ed.

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