Consider the following table on labor hours needed per unit of output:
Ignoring nonlabor inputs,which of the following statements is correct?
A) All of the following are correct.
B) The opportunity cost of a computer equals 1/4 unit of wine in Italy.
C) The opportunity cost of a computer equals 1/2 unit of wine in France.
D) Italy has a comparative advantage in computers.
E) Italy has a comparative advantage in wine.
Correct Answer:
Verified
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
Q34: Assume Japan must forego producing 60 computers
Q35: Figure 16-2
Number of workers needed to produce
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
Q40: If Canada can produce 500 TV sets
Q41: The terms of trade
A)equal the ratio of
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