Question

Country A can produce either 10 computers or 30 bushels of apples. Country B can produce...

Country A can produce either 10 computers or 30 bushels of apples.

Country B can produce either 8 computers or 16 bushels of apples.


Which of the following is true based on the information above?

  • a.)

    Country B has the absolute advantage in the production of only computers.

  • b.)

    Country B has the absolute advantage in the production of both computers and apples.

  • c.)

    Country A has the absolute advantage in the production of only apples.

  • d.)

    Country A has the absolute advantage in the production of both computers and apples.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer :
(d) Country A has the absolute advantage in the production of both computers and apples.
Reason : Country A and B being competitors, the absolute advantage would be defined as the ability of either country to produce strictly greater number of goods(computers or apples) relative to the other country, i.e. for computers, country A has an absolute advantage of producing 10 computers relative to country B's 8.
Similarly, for apples, country A has an absolute advantage of producing 30 bushels relative to country B's 16.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
True or False? 1) If Country A is absolutely better at producing everything than Country B,...
True or False? 1) If Country A is absolutely better at producing everything than Country B, then there is no incentive for Country A to engage in trade with Country B. 2) If Tom has a comparative advantage in producing corn then he must also have an absolute advantage in producing corn. 3) If Joe can produce a good at a lower opportunity cost than Fred, then Joe must have an absolute advantage in producing this good. 4) Consider the...
True or False? 6) The price of apples in a given week is an example of...
True or False? 6) The price of apples in a given week is an example of an economic variable. 7) In Country A a worker can produce either 6 bushels of corn or 18 pounds of tomatoes in one day. In Country B a worker can produce either 4 bushels of corn or 16 pounds of tomatoes in one day. Country A has an absolute advantage in corn production. 8) In Country A a worker can produce either 6 bushels...
QUESTION 31 Maximum Quantity Only produce coffee (tons) Only produce Computers Columbia 600 150 The U.S....
QUESTION 31 Maximum Quantity Only produce coffee (tons) Only produce Computers Columbia 600 150 The U.S. 800 2,400 Columbia and the United States both produce coffee and computers. Assuming that both countries have the same amount of resources. The following table illustrates the maximum quantities of coffee and computers each can produce without trade and if they only produce one of the goods. Use information in Table above to answer the following questions. Which country has an absolute advantage in...
Country A can produce apples for $2 per bushel and wheat for $12 per bushel while...
Country A can produce apples for $2 per bushel and wheat for $12 per bushel while country B can produce apples for $4 per bushel and wheat for $8 per bushel. Which country has a comparative advantage in apples, and which country has a comparative advantage in wheat?
Consider two countries: The Netherlands and Germany. - Each country can produce bicycles and cars by...
Consider two countries: The Netherlands and Germany. - Each country can produce bicycles and cars by its resources. - If Germany allocates all of its resources to car production, it can produce 16 cars and hence no bicycles. And if Germany decides to allocate all resources to produce bicycles, it can produce 8 bicycles and hence, no cars. - If the Netherlands allocates all of its resources to produce cars, it can produce 10 cars and hence no bicycles. And...
Henry needs 9 acres to produce 100 bushels of corn, but only 3 acres to produce...
Henry needs 9 acres to produce 100 bushels of corn, but only 3 acres to produce 100 bushels of rice. John needs 8 acres to produce 100 bushels of corn, but only 2 acres to produce 100 bushels of rice. Who has the absolute advantage in both? Who has the comparative advantage in corn? What is their opportunity cost for corn in terms of rice? a)HenryJohn,4 b)Henry, Henry, 3 c)Henry, John, 2 d)John, John, 3 e)Henry, Henry, 4
labor hours required to produce S or T in country A and B A B S...
labor hours required to produce S or T in country A and B A B S 2 8 T 4 16 It is clear that country A has absolute advantage in both goods, but then which country has comparative advantage? they have same opportunity costs and so I'm confused.
1. In Mexico, a worker can produce 80 bushels of corn or 20 bags of coffee....
1. In Mexico, a worker can produce 80 bushels of corn or 20 bags of coffee. In Costa Rica, a worker can produce 10 bushels of corn or 60 bags of coffee. A. Who has comparative advantage for corn and who has comparative advantage for coffee. 2. suppose before trade occurs, each country has 10 workers and produces the values given in the following table: Country Corn production (bushels) Coffee production (bags) Mexico 400 100 Costa Rica 50 300 Then,...
1.Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3...
1.Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3 cottons and 3 leathers. In Nigeria, a clothing can be produced with 3 cottons and 2 leathers. Which of the following is TRUE? Clothes are produced using cotton and leather. In Ghana, a clothing can be produced with 3 cottons and 3 leathers. In Nigeria, a clothing can be produced with 3 cottons and 2 leathers. Which of the following is TRUE? * 1...
Iceland can produce 32 units of food per person per year or 8 units of clothing...
Iceland can produce 32 units of food per person per year or 8 units of clothing per person per year, but Lavaland can produce 16 units of food per year or 8 units of clothing. Which of the following is true? A. Lavaland has both a comparative and absolute advantage in producing food. B. Iceland has a comparative advantage but not an absolute advantage in producing food. C. Iceland has both a comparative and absolute advantage in producing food. D....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT