The United States and Canada both produce cars and beer. The table below shows the production possibilities per worker in each country. For example, one worker in the US produces 8 cars or 10 cans of beer per week.         Labor Force Cars Beer United States 200 8 10 Canada 100 20 14 Which nation has a comparative advantage in car production?   Question 3 options:   United States   Canada

Macroeconomics
13th Edition
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter21: International Trade
Section: Chapter Questions
Problem 1QP
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The United States and Canada both produce cars and beer. The table below shows the production possibilities per worker in each country. For example, one worker in the US produces 8 cars or 10 cans of beer per week.

     

 

Labor Force

Cars

Beer

United States

200

8

10

Canada

100

20

14

Which nation has a comparative advantage in car production?

 

Question 3 options:

 

United States

 

Canada 

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