Use the following to answer question :
-In 1 hour,Canada can produce 25 tonnes of steel or 250 automobiles.In 1 hour,Japan can produce 30 tonnes of steel or 275 automobiles.This information implies that:
A) Japan has a comparative advantage in the production of automobiles.
B) Canada has an absolute advantage in the production of steel.
C) Japan has a comparative advantage in the production of both goods.
D) Canada has a comparative advantage in the production of automobiles.

Question

Use the following to answer question : 
-In 1 hour,Canada can produce 25 tonnes of steel or 250 automobiles.In 1 hour,Japan can produce 30 tonnes of steel or 275 automobiles.This information implies that:
A) Japan has a comparative advantage in the production of automobiles. 
B) Canada has an absolute advantage in the production of steel. 
C) Japan has a comparative advantage in the production of both goods. 
D) Canada has a comparative advantage in the production of automobiles.

Quizplus · Accepted Answer

Japan has a lower opportunity cost for producing automobiles compared to Canada, giving it a comparative advantage in automobile production.

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