1. Joseph ate dessert before he ate dinner. --> Are the capitalized words a phrase or a clause?

Answer: Clause.
2. She left early in the morning. --> Are the capitalized words a phrase or a clause?
Answer: Phase.

IS THIS CORRECT?

What capitalized words?

(before he ate dinner)

AND (in the morning)

Both are right.

Yes, your answers are correct.

1. The capitalized words in "Joseph ate dessert before he ate dinner" form a clause because they contain a subject ("Joseph") and a verb ("ate").
2. The capitalized words in "She left early in the morning" form a phrase because they do not contain a subject and a verb to form a complete thought. Instead, they function as a prepositional phrase ("in the morning") modifying the verb "left".