In Germany, one worker can produce either one cuckoo clock or one beer mug. In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs. Who has the comparative
Advantage in each good?

Question

Quizplus · Accepted Answer

Germany has a comparative advantage in clocks because it can produce one clock with the same amount of labor that it takes Taiwan to produce half a clock. Taiwan has a comparative advantage in mugs because it can produce three mugs with the same amount of labor that it takes Germany to produce one mug.

In Germany, One Worker Can Produce Either One Cuckoo Clock