Consider the following information on labor hours needed per unit of output:
Ignoring nonlabor inputs,which of the following statements is correct?
A) France has an absolute advantage in the production of both goods.
B) France has a comparative advantage in the production of both goods.
C) the opportunity cost of a computer in Italy is 4 units of wine.
D) the opportunity cost of a unit of wine in France is 2 computers.
E) France produces more computers that Italy produces wine.
Correct Answer:
Verified
Q32: Figure 16-3
Quantities of goods that can be
Q33: In a Mexican factory,each worker can produce
Q34: Assume Japan must forego producing 60 computers
Q35: Figure 16-2
Number of workers needed to produce
Q36: Consider the following table on labor hours
Q38: Comparative advantage is determined by the
A)elasticities of
Q39: In a Mexican factory,each worker can produce
Q40: If Canada can produce 500 TV sets
Q41: The terms of trade
A)equal the ratio of
Q42: If countries begin to specialize according to
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