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Figure: Corn and Watches in the United States and Canada
-(Figure: Corn and Watches in the United States and Canada)Referring to the graphs,we see that _____ has the comparative advantage for corn and _____ has the comparative advantage for watches.

Question

Use the following to answer questions
Figure: Corn and Watches in the United States and Canada 
-(Figure: Corn and Watches in the United States and Canada)Referring to the graphs,we see that _____ has the comparative advantage for corn and _____ has the comparative advantage for watches.

Quizplus · Accepted Answer

The United States has the comparative advantage in corn production because it can produce corn at a lower opportunity cost than Canada. Conversely, Canada has the comparative advantage in watches because it can produce watches at a lower opportunity cost than the United States.

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