If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 5 units of software and 5 units of hardware, then
A. the United States has a comparative and absolute advantage in both goods.
B. China has a comparative and absolute advantage in both goods.
C. the United States has a comparative advantage in both goods.
D. the United States has an absolute advantage in both goods.
Answer: D
You might also like to view...
Nominal GDP uses current year prices to measure GDP
Indicate whether the statement is true or false
"Higher prices always yield higher revenues." Do you agree or disagree? Why?
What will be an ideal response?
During the 2008 financial crisis, it became:
A. easier for individuals but harder for businesses to obtain loans. B. harder for individuals but easier for businesses to obtain loans. C. harder for both individuals and businesses to obtain loans. D. easier for both individuals and businesses to obtain loans.
A one-year discount bond with a par value of $1000 sold today, at issuance, for $943 has a yield to maturity of
A) 4.30%. B) 5.70%. C) 6.04%. D) 9.43%.