The table given below shows the number of labor hours required to produce 1 gallon of wine and 1 pound of cheese in the U.S. and France. The United States has a comparative advantage in the production of _____. $$\begin{array} { l c c }
\hline \text { Labor hours to make: } & \text { In the United States } & \text { In France } \
\hline \text { 1 gallon of wine } & 4.00 & 1.00 \
\text { 1 pourd of cheese } & 1.00 & 2.00 \
\hline
\end{array}$$
A)both the goods
B)only cheese
C)only wine
D)neither cheese nor wine

Question

The table given below shows the number of labor hours required to produce 1 gallon of wine and 1 pound of cheese in the U.S. and France. The United States has a comparative advantage in the production of _____. $$\begin{array} { l c c } 
\hline \text { Labor hours to make: } & \text { In the United States } & \text { In France } \
\hline \text { 1 gallon of wine } & 4.00 & 1.00 \
\text { 1 pourd of cheese } & 1.00 & 2.00 \
\hline
\end{array}$$
A)both the goods
B)only cheese
C)only wine
D)neither cheese nor wine

Quizplus · Accepted Answer

The United States has a comparative advantage in producing cheese because it requires fewer labor hours (1 hour) compared to France (2 hours). For wine, France has the comparative advantage as it requires fewer labor hours (1 hour) compared to the United States (4 hours). Comparative advantage is determined by who has the lower opportunity cost in production, not necessarily who can produce more or with fewer absolute resources.

The Table Given Below Shows the Number of Labor Hours