Please include an explanation to why the option you chose is correct. Each option has an incorrect answer which I have added after the question. Thank you

1. The following table shows the number of minutes it takes to produce one unit of each good. There are two workers in the economy Julia and Tim, each work 8 hours per day.

	Shirt	Hat
Julia	60	120
Tim	30	90

Which of the following statement is true?

a) Julia has a comparative advantage in producing hats and Tim has a comparative advantage in producing shirts but Tim has an absolute advantage in shirts and Tim has an absolute advantage in hats.

b) Julia has a comparative advantage in producing shirts and Tim has a comparative advantage in producing hats but Tim has the absolute advantage in both goods.

c) Julia has a comparative advantage in producing hats and Tim has a comparative advantage in producing shirts but Tim has the absolute advantage in both goods.

d) Julia has a comparative advantage in producing hats and Tim has a comparative advantage in producing shirts but Julia has the absolute advantage in both goods.

Option d here is incorrect.

2. In the context of international trade which of the following is not true?

a) A worker has an absolute advantage in producing a good if they are able to produce the good more quickly.

b) Workers dier in the opportunity cost of producing goods. A worker has a comparative advantage in producing a good if his/her opportunity cost is below that of other workers in the economy.

c) In practice, workers may not have a comparative advantage in producing a good since no individuals have exactly the the same skills.

d) A production possibilities curve is a graph that shows the maximum output that can be pro- duced, given the level of output of the other good.

Option a is incorrect