Figure 34-5

From the graph in Figure 34-5 (curves show output per unit of labor input), one can infer that

Question

Figure 34-5 ​

From the graph in Figure 34-5 (curves show output per unit of labor input), one can infer that

Quizplus · Accepted Answer

The graph shows that Japan has a higher output per unit of labor input in both TVs and computers compared to China. This indicates an absolute advantage in both products. However, the slope of the curve for computers is steeper for China, implying a comparative advantage in that product. Therefore, the correct choice is C – Japan has an absolute advantage in both TVs and computers, but a comparative advantage only in computers. Option A is incorrect, because Japan has a comparative advantage in computers as well, according to the slope of the curves. Option B is incorrect, because Japan has an absolute advantage in both products. Option D is incorrect, because the graph does not provide sufficient evidence to suggest that China has a comparative advantage in TVs.

Figure 34-5 ​ From the Graph in Figure 34-5 (Curves Show Output Per

Figure 34-5 From the Graph in Figure 34-5 (Curves Show Output Per