Suppose Aharoni and Kalinga are the only two countries in the world and they produce computers and shoes.Aharoni has 100 workers,and Kalinga has 200 workers.The table below shows the per-day production possibilities for each country.Aharoni has:
Table 17.1:
A) an absolute advantage in computers only.
B) an absolute advantage in shoes only.
C) a comparative advantage in computers.
D) a comparative advantage in shoes.
E) neither absolute advantage nor comparative advantage in computers.
Correct Answer:
Verified
Q3: In a two-country,two-commodity framework,when one country has
Q4: Which of the following is true of
Q14: Which of the following does not result
Q16: International trade is most likely to occur
Q17: The basis of the benefits of specialization
Q20: Which of the following factors is most
Q25: Which of the following is true of
Q28: Which of the following is true of
Q31: A country should export only those goods
Q56: The following table shows per-day production data
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents