In Canada, the average worker can produce 10 computers or 6 cars a year. In the United States, the average worker can produce 12 computers or 10 cars a year. Based on the given information, which statement is correct?

Question

Quizplus · Accepted Answer

The United States has an absolute advantage in both goods because it can produce more of both computers and cars per worker. However, it has a comparative advantage in producing cars because it has a lower opportunity cost for cars compared to Canada.

In Canada, the Average Worker Can Produce 10 Computers or 6