Assume South Korea and Vietnam have the same amount of resources. In a given time period, South Korea can produce 100,000 jackets or 1,000,000 shirts. Vietnam can produce 200,000 jackets or 2,000,000 shirts. This means that

A. Vietnam has an absolute advantage in both jackets and shirts.
B. South Korea has an absolute advantage in jackets.
C. South Korea has a comparative advantage in jackets.
D. Vietnam has a comparative advantage in shirts.


Answer: A

Economics

You might also like to view...

If price changes by one firm induce rival firms selling close substitutes to alter their prices,

A) firms will be able to raise their prices without fear of losing sales. B) the demand curve will shift in response to a change in price. C) the original firm faces an elastic demand curve. D) the original firm faces an inelastic demand curve. E) there is no competition between the rival firms.

Economics

Which of the following is NOT a transaction cost associated with using inputs?

A. Time spent negotiating labor contracts with union workers B. Wages paid to labor C. Opportunity costs of negotiating the price of renting machines D. Costs of searching for a new supplier of machines

Economics

If the price of a commodity increases as the result of increased demand, you would expect the:

A) supply to increase. B) quantity supplied to increase. C) quantity supplied to decrease. D) supply curve to shift to the right.

Economics

Education increases the stock of which factor of production?

A. physical capital B. entrepreneurship C. land D. human capital

Economics