Output per Hour Worked United States Mexico Computers (unit) 3 1 Shoes (pairs) 6 3 Based on the above table, which country or countries has an absolute advantage and a comparative advantage in shoes? a) Mexico has a comparative advantage, and the United States has an absolute advantage in shoes.
Output per Hour Worked United States Mexico Computers (unit) 3 1 Shoes (pairs) 6 3 Based on the above table, which country or countries has an absolute advantage and a comparative advantage in shoes? a) Mexico has a comparative advantage, and the United States has an absolute advantage in shoes.
Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 2.3P
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Output per Hour Worked
|
United States |
Mexico |
Computers (unit) |
3 |
1 |
Shoes (pairs) |
6 |
3 |
Based on the above table, which country or countries has an
a) Mexico has a comparative advantage, and the United States has an absolute advantage in shoes.
b) Mexico has an absolute and comparative advantage in shoes.
c) The United States has a comparative advantage, and Mexico has an absolute advantage in shoes.
d) The United States has an absolute and comparative advantage in shoes.
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