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

-If Japan has a comparative advantage over Canada in the production of computers, which of the following must be true?

Question

The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1
 
-If Japan has a comparative advantage over Canada in the production of computers, which of the following must be true?

Quizplus · Accepted Answer

The concept of comparative advantage states that a country should specialize in producing goods for which it has a lower opportunity cost. In this case, if Japan has a comparative advantage over Canada in the production of computers, it means that Japan has a lower opportunity cost of producing computers than Canada. Therefore, the correct answer is D, which states that Japan has a lower opportunity cost in the production of computers. A, B, C, and E are not necessarily true or related to the concept of comparative advantage.

The Table Below Shows Units of Wheat and Cloth Produced