Given the following Classical-type table showing the number of days of labor inputRequired to obtain one unit of output of each of the two commodities in each of the two Countries:
$$\begin{array} { l l c }
& \underline { \text { bicycles } } & \underline { \text { computers } } \
\text { United States } & \text { 4 days } & \text { 3 days } \
\text { United Kingdom } & 5 \text { days } & \text { 6 days }
\end{array}$$
The United States has an absolute advantage in the production of __________.
A) bicycles (only)
B) computers (only)
C) both bicycles and computers
D) neither bicycles nor computers

Question

Given the following Classical-type table showing the number of days of labor inputRequired to obtain one unit of output of each of the two commodities in each of the two Countries:
$$\begin{array} { l l c } 
& \underline { \text { bicycles } } & \underline { \text { computers } } \
\text { United States } & \text { 4 days } & \text { 3 days } \
\text { United Kingdom } & 5 \text { days } & \text { 6 days }
\end{array}$$
The United States has an absolute advantage in the production of __________.
A) bicycles (only)
B) computers (only)
C) both bicycles and computers
D) neither bicycles nor computers

Quizplus · Accepted Answer

The United States has an absolute advantage in both bicycles and computers because it requires fewer days of labor to produce one unit of each commodity compared to the United Kingdom (4 days vs. 5 days for bicycles and 3 days vs. 6 days for computers).

Given the Following Classical-Type Table Showing the Number of Days