Table 2-13
Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.
-For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces. Which of the following is true about the comparative advantage between the two countries?
A) Australia has the comparative advantage in surfboards.
B) Australia has the comparative advantage in boomerangs.
C) New Zealand has the comparative advantage in surfboards and boomerangs.
D) New Zealand has the comparative advantage in boomerangs.

Question

Table 2-13
  Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.
-For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces. Which of the following is true about the comparative advantage between the two countries?
A) Australia has the comparative advantage in surfboards. 
B) Australia has the comparative advantage in boomerangs. 
C) New Zealand has the comparative advantage in surfboards and boomerangs. 
D) New Zealand has the comparative advantage in boomerangs.

Quizplus · Accepted Answer

The Answer of Table 2-13
  Table 2-13 shows the output per day of two pet groomers, Tammi and Horace. They can either devote their time to grooming dogs or bathing cats.
-For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces. Which of the following is true about the comparative advantage between the two countries?
A) Australia has the comparative advantage in surfboards. 
B) Australia has the comparative advantage in boomerangs. 
C) New Zealand has the comparative advantage in surfboards and boomerangs. 
D) New Zealand has the comparative advantage in boomerangs.

Table 2-13 Table 2-13 Shows the Output Per Day of Day