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

-It seems evident that countries would have an advantage in producing those goods that use relatively large amounts of their most abundant factor of production.

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
 
-It seems evident that countries would have an advantage in producing those goods that use relatively large amounts of their most abundant factor of production.

Quizplus · Accepted Answer

This statement is consistent with the principle of comparative advantage, which suggests that countries should specialize in producing goods that they can produce most efficiently (i.e. using relatively large amounts of their most abundant factor of production). This allows for greater efficiency and overall welfare gains through increased trade.

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