The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-Differences in the productivity of labor accounts for comparative advantage if:

Question

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5
 
-Differences in the productivity of labor accounts for comparative advantage if:

Quizplus · Accepted Answer

Differences in the productivity of labor refer to the amount of labor required to produce a unit of a good in different countries. If the labor hours required to produce each good vary across countries, then there is a difference in the productivity of labor, which can lead to comparative advantage. This is because a country can produce a good with fewer labor hours, which means it can produce more of the good or produce it at a lower cost than another country. The other choices do not directly relate to productivity of labor and comparative advantage.

The Table Below Shows the Quantity Demanded (In Thousands) and Quantity