Table 3-5

-Refer to Table 3-5. Which of the following is correct?
A)Canada has a comparative advantage in airplanes and Japan has a comparative advantage in airplanes.
B)Canada has a comparative advantage in cars and Japan has a comparative advantage in airplanes.
C)Canada has a comparative advantage in airplanes and Japan has a comparative advantage in cars.
D)Canada has a comparative advantage in neither good and Japan has a comparative advantage in cars.

Question

Table 3-5
 
-Refer to Table 3-5. Which of the following is correct?
A)Canada has a comparative advantage in airplanes and Japan has a comparative advantage in airplanes. 
B)Canada has a comparative advantage in cars and Japan has a comparative advantage in airplanes. 
C)Canada has a comparative advantage in airplanes and Japan has a comparative advantage in cars. 
D)Canada has a comparative advantage in neither good and Japan has a comparative advantage in cars.

Quizplus · Accepted Answer

Canada has a lower opportunity cost of producing cars (1 airplane = 2 cars) than Japan (1 airplane = 4 cars). Japan has a lower opportunity cost of producing airplanes (1 car = 0.25 airplanes) than Canada (1 car = 0.5 airplanes).

Table 3-5 -Refer to Table 3-5. Which of the Following Is Correct