Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.Country B has the _______________ advantage in the production of tablets,which means they should specialize in __________________.
A) comparative; tablets
B) absolute; tablets
C) comparative; iPods
D) absolute; iPods

Question

Quizplus · Accepted Answer

Country B has a comparative advantage in the production of tablets because they can produce 10 tablets per worker per year while Country A can only produce 5 tablets per worker per year. Therefore, Country B should specialize in producing tablets to maximize their production efficiency.

Suppose That a Worker in Country a Can Make Either