Table 3-3 Maria Courtney Labour hours needed to make one unit: Sweater 40 20 Coat 8 5 Amount produced in 40 hours: Sweater 1 2 Coat 5 8 Refer to Table 3-3. What does each of the two producers have a comparative or absolute advantage in? Oa Maria has an absolute advantage in coats, and Courtney has a comparative advantage in sweaters. Ob. Maria has an absolute advantage in both goods, and Courtney has a comparative advantage in coats. O.C. Maria has an absolute advantage in sweaters, and Courtney has a comparative advantage in sweaters. d. Maria has an absolute advantage in neither good, and Courtney has a comparative advantage in sweaters.

Table 3-3 Maria Courtney Labour hours needed to make one unit: Sweater 40 20 Coat 8 5 Amount produced in 40 hours: Sweater 1 2 Coat 5 8 Refer to Table 3-3. What does each of the two producers have a comparative or absolute advantage in? Oa Maria has an absolute advantage in coats, and Courtney has a comparative advantage in sweaters. Ob. Maria has an absolute advantage in both goods, and Courtney has a comparative advantage in coats. O.C. Maria has an absolute advantage in sweaters, and Courtney has a comparative advantage in sweaters. d. Maria has an absolute advantage in neither good, and Courtney has a comparative advantage in sweaters.

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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In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell? Calculate the opportunity cost of producing 80 additional radios in Japan and in Malaysia. (Your calculation may involve fractions, which is fine,) Which country has a comparative advantage in the production of radios? Calculate the opportunity cost of producing 10 additional tons of rubber in Japan and in Malaysia. Which country has a comparative advantage in producing rubber? In this example, does each country have an absolute advantage and a comparative advantage in the same good? In what product should Japan specialize? In what product should Malaysia specialize?
In Germany it takes three workers to make one television and four workers to make one video camera. In Poland It takes six workers to make one television and 12 workers to make one video camera. Who has the absolute advantage in the production of televisions? Who has the absolute advantage in the production of video cameras? How can you tell? Calculate the opportunity cost of producing one additional television set in Germany and In Poland. (Your calculation may involve fractions, which Is tine.) Which country has a comparative advantage in the production of televisions? Calculate the opportunity cost of producing one video camera in Germany and in Poland. Which country has a comparative advantage in the production of video cameras? In this example, is absolute advantage the same as comparative advantage, or not? In what product should Germany specialize? In what product should Poland specialize?
True or False: The source of comparative advantage must be natural elements like climate and mineral deposits. Explain.
Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40 pounds of beef or 30 autos. Which country has the absolute advantage in beef? Which country has the absolute advantage in producing autos? What is the opportunity cost of producing one pound of beef In Brazil? What is the opportunity cost of producing one pound of beef in the United States?