Use the following to answer questions: Table: iPhone and iPod Production $$\begin{array} { l c c }
\hline & \text { One iPhone } & \text { One iPod } \
\hline \text { Canadian labor units } & 3 & 4 \
\text { United States labor units } & 2 & 2 \
\hline
\end{array}$$
-(Table: iPhone and iPod Production) According to the table on iPhone and iPod production, which of the following is TRUE about Canadian and U.S. comparative advantages?
A) Canada has a comparative advantage in producing both iPhones and iPods.
B) The United States has a comparative advantage in producing both iPhones and iPods.
C) Canada has a comparative advantage in producing iPhones, and the United States has a comparative advantage in producing iPods.
D) Canada has a comparative advantage in producing iPods, and the United States has a comparative advantage in producing iPhones.

Question

Use the following to answer questions: Table: iPhone and iPod Production $$\begin{array} { l c c } 
\hline & \text { One iPhone } & \text { One iPod } \
\hline \text { Canadian labor units } & 3 & 4 \
\text { United States labor units } & 2 & 2 \
\hline
\end{array}$$
-(Table: iPhone and iPod Production) According to the table on iPhone and iPod production, which of the following is TRUE about Canadian and U.S. comparative advantages?
A) Canada has a comparative advantage in producing both iPhones and iPods.
B) The United States has a comparative advantage in producing both iPhones and iPods.
C) Canada has a comparative advantage in producing iPhones, and the United States has a comparative advantage in producing iPods.
D) Canada has a comparative advantage in producing iPods, and the United States has a comparative advantage in producing iPhones.

Quizplus · Accepted Answer

Canada has a comparative advantage in producing iPhones because it requires fewer Canadian labor units to produce one iPhone than it does to produce one iPod. The United States has a comparative advantage in producing iPods because it requires fewer U.S. labor units to produce one iPod than it does to produce one iPhone.

Use the Following to Answer Questions: Table: IPhone and IPod