Suppose that with 1 unit of labor, Canada can produce 40 TVs or 20 computers. With 1 unit of labor, Taiwan can produce 30 TVs or 10 computers. Which of the following is correct?

A. Taiwan has a comparative advantage in the production of computers.
B. Canada has an absolute advantage in the production of neither good.
C. Canada has a comparative advantage in the production of computers.
D. Taiwan has an absolute advantage in the production of computers.
E. Taiwan has an absolute advantage in the production of TVs.


Answer: C

Economics

You might also like to view...

The Paradox of Value is resolved by the willingness for an individual to pay a high price for a good or service that has a high marginal utility per dollar

Indicate whether the statement is true or false

Economics

A 10 percent increase in the price of tablets leads to a 10 percent decrease in the quantity demanded of tablets. The absolute price elasticity of demand for tablets is

A) 3. B) 0.3. C) 1. D) 10.

Economics

Most responsible central banks publish their balance sheet:

A. quarterly. B. at least monthly. C. semi-annually. D. at least once a year.

Economics

If the price elasticity of supply is equal to infinity and the price was to fall, the quantity supplied would:

A. decrease slightly. B. fall to zero. C. not change. D. increase.

Economics