5. Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a Brazilian worker can produce 150 clothes or 10 cars. Each country has 8 hours available. Choose one option for the questions Who has the absolute advantage in the production of clothes? Who has the absolute advantage in the production of cars? Who has the comparative advantage in the production of clothes?

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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5. Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a Brazilian worker can produce 150 clothes or 10 cars. Each country has 8 hours available.

Choose one option for the questions

Who has the absolute advantage in the production of clothes?

Who has the absolute advantage in the production of cars?

Who has the comparative advantage in the production of clothes?

Who has the comparative advantage in the production of cars?

What is the opportunity cost for cars?

Choose one option for the questions above

a. USA produce with lower opportunity cost

b. Brazil produce more than USA using less resources

c. 1/10 clothes for USA and 1/15 clothes for Brazil

d. Brazil produce with lower opportunity cost

e. 10 clothes for USA and 15 clothes for Brazil

f. Brazil produce more than USA using more resources

g. Brazil produce more than USA using same resources

h. Neither USA or Brazil

i. USA produce more than brazil using less resources

j. USA produce more than brazil using same resources

k. 10 cars for USA 15 cars for brazil

l. 1/10 cars for USA 1/15 cars for brazil

m. USA produce more than brazil using more resources.

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