Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesChinaComputers83Bicycles26 Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement?
A. China has a comparative advantage in both goods.
B. China has a comparative advantage in computers.
C. The United States has a comparative advantage in bicycles.
D. The United States has a comparative advantage in computers.
Answer: D
You might also like to view...
If required reserves are $150 and deposits are $1000, what is the required reserve ratio?
A) 10 percent B) 15 percent C) 5 percent D) 85 percent
All of the following are examples of producer goods except: a. machinery
b. tools. c. appliances. d. factory buildings.
Economists who are in favor of an increase in the size and scope of government tend to prefer ________________ when expansionary _______________ policy is needed to raise aggregate demand
A) tax cuts; fiscal B) tax cuts; monetary C) more government spending; fiscal D) more government spending; monetary
The law of increasing opportunity costs states that:
A. Costs of production increase for one good, but costs decrease for the other good B. Increases in wages and other resource costs is what the increasing opportunity costs refer to C. Increases in the production of one good require larger and larger sacrifices of the other good D. Increases in the production of one good make the production of that good and easier