Refer to the information provided in Figure 33.2 below to answer the question(s) that follow. Figure 33.2
-Refer to Figure 33.2. the U.S. has
A) a comparative advantage in producing trucks.
B) an absolute advantage in producing trucks.
C) a comparative advantage in producing cars.
D) no comparative advantage in producing either cars or trucks.

Question

Refer to the information provided in Figure 33.2 below to answer the question(s) that follow.  Figure 33.2
-Refer to Figure 33.2. the U.S. has
A) a comparative advantage in producing trucks. 
B) an absolute advantage in producing trucks. 
C) a comparative advantage in producing cars. 
D) no comparative advantage in producing either cars or trucks.

Quizplus · Accepted Answer

According to the information given in the production possibilities table, the U.S. can produce 10 million cars or 4 million trucks. Meanwhile, Japan can produce 4 million cars or 2 million trucks. Therefore, the U.S. has a comparative advantage in producing cars because it can produce more cars than trucks compared to Japan.

Refer to the Information Provided in Figure 33