Table 3.1
Use the data in the table below to answer the following question(s):
Output per Hour Worked

-Based on Table 3.1,which country or countries has an absolute advantage and a comparative advantage in shoes?
A)Mexico has an absolute and comparative advantage in shoes.
B)The United States has an absolute and comparative advantage in shoes.
C)The United States has a comparative advantage,and Mexico has an absolute advantage in shoes.
D)Mexico has a comparative advantage,and the United States has an absolute advantage in shoes.
E)There is not enough information to tell.

Question

Table 3.1
Use the data in the table below to answer the following question(s):
Output per Hour Worked
 
-Based on Table 3.1,which country or countries has an absolute advantage and a comparative advantage in shoes?
A)Mexico has an absolute and comparative advantage in shoes. 
B)The United States has an absolute and comparative advantage in shoes. 
C)The United States has a comparative advantage,and Mexico has an absolute advantage in shoes. 
D)Mexico has a comparative advantage,and the United States has an absolute advantage in shoes. 
E)There is not enough information to tell.

Quizplus · Accepted Answer

Mexico has an absolute advantage in shoes because it can produce more shoes per hour than the United States. However, the United States has a comparative advantage in shoes because it has a lower opportunity cost of producing shoes compared to Mexico. This is because the United States has a higher output per hour worked in computers than Mexico, meaning it is more efficient in producing computers compared to shoes. As a result, the United States can produce shoes at a lower opportunity cost than Mexico, giving it a comparative advantage.

Table 3.1 Use the Data in the Table Below to Answer the Answer