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Suppose That with 1 Unit of Labor, Canada Can Produce

Question 117

Multiple Choice

Suppose that with 1 unit of labor, Canada can produce 40 TVs or 20 computers.With 1 unit of labor, Taiwan can produce 30 TVs or 10 computers.Which of the following is correct?


A) Taiwan has a comparative advantage in the production of computers.
B) Canada has an absolute advantage in the production of neither good.
C) Canada has a comparative advantage in the production of computers.
D) Taiwan has an absolute advantage in the production of computers.
E) Taiwan has an absolute advantage in the production of TVs.

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