The following question(s)relate(s)to the material in the addendum to Chapter 2.Use the production possibilities data for Lebos and Slavia below to answer the question(s).
Table 2-4

-Refer to Table 2-4.Which of the following is correct?
A)Lebos has the comparative advantage in both goods.
B)Slavia has the comparative advantage in food.
C)Lebos has the comparative advantage in food.
D)Lebos has the comparative advantage in clothing.

Question

The following question(s)relate(s)to the material in the addendum to Chapter 2.Use the production possibilities data for Lebos and Slavia below to answer the question(s).
Table 2-4
 
-Refer to Table 2-4.Which of the following is correct?
A)Lebos has the comparative advantage in both goods. 
B)Slavia has the comparative advantage in food. 
C)Lebos has the comparative advantage in food. 
D)Lebos has the comparative advantage in clothing.

Quizplus · Accepted Answer

Lebos has a lower opportunity cost of producing food (1/2 of a unit of clothing) compared to Slavia (1 unit of clothing). Thus, Lebos has a comparative advantage in producing food.

The Following Question(s)relate(s)to the Material in the Addendum to Chapter