Figure 34-5

From the graph in Figure 34-5 (curves show output per unit of labor input), one can infer that

Question

Figure 34-5

From the graph in Figure 34-5 (curves show output per unit of labor input), one can infer that

Quizplus · Accepted Answer

The graph shows that Japan has a higher output per unit of labor input for both TVs and computers compared to China. Therefore, Japan has an absolute advantage in both. However, the slope of the curve for computers is steeper for China, indicating a comparative advantage in computers. Japan has a comparative advantage in TVs as the slope of the curve for TVs is steeper for Japan. Therefore, option C is the best choice. Option A is incorrect as it implies that Japan has a comparative advantage in both TVs and computers, which is not the case. Option B is incorrect as it implies that Japan only has a comparative advantage in TVs, which is not true given they also have an absolute advantage. Option D is incorrect as the graph does not provide any information about China's advantage in TVs.

Figure 34-5 From the Graph in Figure 34-5 (Curves Show Output Per