Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a brazillian can produce 150 clothes or 10 cars.  1. Who has the absolute advantage in production if clothes  2. Who has the absolute advantage in the production of cars  3. Who has a comparative advantage in the production of clothes

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 3SCQ: In France it takes one worker to produce one sweater, and one worker to produce one bottle of wine....
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Suppose that in an hour an American worker can produce 200 clothes or 20 cars, while a brazillian can produce 150 clothes or 10 cars. 

1. Who has the absolute advantage in production if clothes 

2. Who has the absolute advantage in the production of cars 

3. Who has a comparative advantage in the production of clothes 

4. Who has a comparative advantage in the production of cars 

5. What is the opportunity cost for cars

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