Figure 16-1
Number of workers needed to produce one unit of each of the following goods:

-What can be said regarding comparative advantage in production for the two countries shown in Figure 16-1?
A)Colombia has a comparative advantage in producing both calculators and radios.
B)Korea has a comparative advantage in producing radios and Colombia has a comparative advantage in producing calculators.
C)Korea has a comparative advantage in producing both radios and calculators.
D)Neither country has a comparative advantage in producing radios.
E)Colombia has a comparative advantage only in producing radios.

Question

Figure 16-1
Number of workers needed to produce one unit of each of the following goods:
 
-What can be said regarding comparative advantage in production for the two countries shown in Figure 16-1?
A)Colombia has a comparative advantage in producing both calculators and radios. 
B)Korea has a comparative advantage in producing radios and Colombia has a comparative advantage in producing calculators. 
C)Korea has a comparative advantage in producing both radios and calculators. 
D)Neither country has a comparative advantage in producing radios. 
E)Colombia has a comparative advantage only in producing radios.

Quizplus · Accepted Answer

According to Figure 16-1, Korea requires fewer workers to produce one unit of radios compared to Colombia, whereas Colombia requires fewer workers to produce one unit of calculators. This implies that Korea has a comparative advantage in producing radios and Colombia has a comparative advantage in producing calculators. Therefore, option B is the correct choice.

Figure 16-1 Number of Workers Needed to Produce One Unit of Each