According to the following table,the US has a comparative advantage in:
$\begin{array}{|l|c|c|}
\hline &\text { U.S. }&\text { U.K.} \
\hline \text {Wheat (bushels/hr) }& 9 & 3 \
\hline\text { Cloth (yards/hr) }& 6 & 4 \
\hline
\end{array}$
A)Wheat
B)Cloth
C)Both
D)Neither

Question

According to the following table,the US has a comparative advantage in: 
$\begin{array}{|l|c|c|}
\hline &\text { U.S. }&\text { U.K.} \
\hline \text {Wheat (bushels/hr) }& 9 & 3 \
\hline\text { Cloth (yards/hr) }& 6 & 4 \
\hline
\end{array}$
A)Wheat
B)Cloth
C)Both
D)Neither

Quizplus · Accepted Answer

The US has a lower opportunity cost of producing wheat compared to cloth. In the US, 1 unit of resources can produce 2 tons of wheat or 1 unit of cloth. In Europe, 1 unit of resources can produce 1 ton of wheat or 2 units of cloth. Therefore, the US has a comparative advantage in producing wheat because it can produce more wheat per unit of resources than Europe.

According to the Following Table,the US Has a Comparative Advantage