The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1

-The difference between absolute and comparative advantage is that:
A) absolute advantage refers to input cost, while comparative advantage refers to opportunity cost.
B) absolute advantage refers to opportunity cost, while comparative advantage refers to input cost.
C) absolute advantage is applicable only to individuals, and comparative advantage is applicable only to countries.
D) absolute advantage is applicable only to countries, and comparative advantage is applicable only to individuals.
E) absolute advantage is applicable to international trade, while comparative advantage applies to exchange of goods in the domestic market.
Correct Answer:
Verified
Q26: The data in the table below assumes
Q27: The data in the table below assumes
Q28: The following table shows the units of
Q29: The data in the table below assumes
Q30: The following table shows the units of
Q32: The following table shows the units of
Q33: Scenario 20.1
Suppose labor productivity differences are the
Q34: The following table shows the units of
Q35: Scenario 20.1
Suppose labor productivity differences are the
Q36: The table below shows units of wheat
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