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

-Countries with a relatively high stock of skilled labor will have a comparative advantage in producing goods that require relatively larger quantities of skilled labor.

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
 
-Countries with a relatively high stock of skilled labor will have a comparative advantage in producing goods that require relatively larger quantities of skilled labor.

Quizplus · Accepted Answer

The principle of comparative advantage suggests that countries should produce goods for which they have a lower opportunity cost of production. If a country has a relatively high stock of skilled labor, then it will have a lower opportunity cost of producing goods that require relatively larger quantities of skilled labor. This means that the country will have a comparative advantage in producing those goods compared to countries with a lower stock of skilled labor.

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