Assume Japan must forego producing 60 computers for each automobile it produces.Moreover,the United States can produce one automobile if it forgoes producing 80 computers.Which of the following is true?
A) The United States has a lower opportunity cost of producing automobiles.
B) The United States has a comparative advantage in producing automobiles.
C) Japan has a comparative advantage in producing computers.
D) No trade will occur between Japan and the United States.
E) Japan has a lower opportunity cost of producing automobiles.
Correct Answer:
Verified
Q29: Given an opportunity cost of 10 bicycles
Q30: Figure 16-3
Quantities of goods that can be
Q31: In a Mexican factory,each worker can produce
Q32: Figure 16-3
Quantities of goods that can be
Q33: In a Mexican factory,each worker can produce
Q35: Figure 16-2
Number of workers needed to produce
Q36: Consider the following table on labor hours
Q37: Consider the following information on labor hours
Q38: Comparative advantage is determined by the
A)elasticities of
Q39: In a Mexican factory,each worker can produce
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents