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Figure: PPF Mexico & United States
-(Figure: PPF Mexico & United States) Use the above figure in which both Mexico and the United States each have 24 units of labor. Mexico has a comparative advantage in ______ and the United States has a comparative advantage in ______.
A) computers; shirts
B) shirts; computers
C) computers; computers
D) shirts; shirts

Question

Use the following to answer questions:
Figure: PPF Mexico & United States 
-(Figure: PPF Mexico & United States) Use the above figure in which both Mexico and the United States each have 24 units of labor. Mexico has a comparative advantage in ______ and the United States has a comparative advantage in ______.
A) computers; shirts 
B) shirts; computers 
C) computers; computers 
D) shirts; shirts

Quizplus · Accepted Answer

The figure shows that Mexico can produce more shirts than computers with the given resources, while the United States can produce more computers than shirts. This means that Mexico has a comparative advantage in producing shirts and the United States has a comparative advantage in producing computers. Therefore, the correct choice is option B.

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