The table given below shows the number of labor hours required to produce 1 umbrella and 1 bushel of corn in the U.K. and the Rest of the World. The Rest of the World has an absolute advantage in the production of _____. $$\begin{array} { | c | c | c | }
\hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \
\hline \text { l umbrella } & 3.00 & 2.00 \
\hline \text { 1 bushel of corn} & 1.00 & 0.25 \
\hline
\end{array}$$
A)both corn and umbrella
B)only umbrella
C)only corn
D)neither corn nor umbrella

Question

The table given below shows the number of labor hours required to produce 1 umbrella and 1 bushel of corn in the U.K. and the Rest of the World. The Rest of the World has an absolute advantage in the production of _____. $$\begin{array} { | c | c | c | } 
\hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \
\hline \text { l umbrella } & 3.00 & 2.00 \
\hline \text { 1 bushel of corn} & 1.00 & 0.25 \
\hline
\end{array}$$
A)both corn and umbrella
B)only umbrella
C)only corn
D)neither corn nor umbrella

Quizplus · Accepted Answer

The Rest of the World requires fewer labor hours to produce both 1 umbrella (2 hours vs. 3 hours in the U.K.) and 1 bushel of corn (0.25 hours vs. 1 hour in the U.K.), indicating an absolute advantage in the production of both items.

The Table Given Below Shows the Number of Labor Hours