2. Use the following table to determine the absolute advantage and comparative advantage of China and the United States in producing wheat and textiles. Explain your answers. Textiles Wheat Output Per Worker United States $165,000 12,260 bushels China $27,000 300 bushels

2. Use the following table to determine the absolute advantage and comparative advantage of China and the United States in producing wheat and textiles. Explain your answers. Textiles Wheat Output Per Worker United States $165,000 12,260 bushels China $27,000 300 bushels

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 2SCQ: Brazil can produce 100 pounds of beef or 10 autos. In contrast the United States can produce 40...

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Question

2. Use the following table to determine the absolute advantage and comparative advantage
of China and the United States in producing wheat and textiles. Explain your answers.
Textiles
Wheat
Output Per Worker
United States
$165,000
12,260 bushels
China
$27,000
300 bushels

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