Table 2-9

Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.
-Refer to Table 2-9.If the two countries specialize and trade, who should export sailboats?
A)There is no basis for trade between the two countries.
B)Guatemala
C)Honduras
D)They should both be importing sailboats.

Question

Table 2-9
  
Table 2-9 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras.
-Refer to Table 2-9.If the two countries specialize and trade, who should export sailboats?
A)There is no basis for trade between the two countries. 
B)Guatemala 
C)Honduras 
D)They should both be importing sailboats.

Quizplus · Accepted Answer

Honduras should export sailboats if it has a comparative advantage in producing them, meaning it can produce sailboats at a lower opportunity cost than Guatemala.

Table 2-9 Table 2-9 Shows the Number of Labor Hours Required to of Labor