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According to the information in the table, which of the following statements is true if both countries have the same number of workers? One hour of labor is used to produce the following amounts of cheese and butter for each country: Country A B Cheese 200 units 150 units Butter 600 units 300 units Country A has an absolute advantage in butter but a comparative advantage in cheese. O Country B has a comparative advantage in butter but no absolute advantage in either good. Country A has both an absolute and a comparative advantage in cheese. Country B has an absolute advantage in cheese, but without more information, it is not possible to tell in which product it has a comparative advantage. O Country A has an absolute advantage in cheese but a comparative advantage in butter.

According to the information in the table, which of the following statements is true if both countries have the same number of workers? One hour of labor is used to produce the following amounts of cheese and butter for each country: Country A B Cheese 200 units 150 units Butter 600 units 300 units Country A has an absolute advantage in butter but a comparative advantage in cheese. O Country B has a comparative advantage in butter but no absolute advantage in either good. Country A has both an absolute and a comparative advantage in cheese. Country B has an absolute advantage in cheese, but without more information, it is not possible to tell in which product it has a comparative advantage. O Country A has an absolute advantage in cheese but a comparative advantage in butter.

Principles of Economics 2e
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
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According to the information in the table, which of the following statements is true if both countries have the same number of workers? One hour of labor is used to produce the following amounts of cheese and butter for each country: Country A B Cheese 200 units 150 units Butter 600 units 300 units Country A has an absolute advantage in butter but a comparative advantage in cheese. O Country B has a comparative advantage in butter but no absolute advantage in either good. Country A has both an absolute and a comparative advantage in cheese. Country B has an absolute advantage in cheese, but without more information, it is not possible to tell in which product it has a comparative advantage. O Country A has an absolute advantage in cheese but a comparative advantage in butter.
Transcribed Image Text:According to the information in the table, which of the following statements is true if both countries have the same number of workers? One hour of labor is used to produce the following amounts of cheese and butter for each country: Country A B Cheese 200 units 150 units Butter 600 units 300 units Country A has an absolute advantage in butter but a comparative advantage in cheese. O Country B has a comparative advantage in butter but no absolute advantage in either good. Country A has both an absolute and a comparative advantage in cheese. Country B has an absolute advantage in cheese, but without more information, it is not possible to tell in which product it has a comparative advantage. O Country A has an absolute advantage in cheese but a comparative advantage in butter.
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