Consider the following table on labor hours needed per unit of output: Ignoring nonlabor inputs,which of the following statements is correct?
A) All of the following are correct.
B) The opportunity cost of a computer equals 1/4 unit of wine in Italy.
C) The opportunity cost of a computer equals 1/2 unit of wine in France.
D) Italy has a comparative advantage in computers.
E) Italy has a comparative advantage in wine.

Question

Consider the following table on labor hours needed per unit of output:  Ignoring nonlabor inputs,which of the following statements is correct?
A) All of the following are correct. 
B) The opportunity cost of a computer equals 1/4 unit of wine in Italy. 
C) The opportunity cost of a computer equals 1/2 unit of wine in France. 
D) Italy has a comparative advantage in computers. 
E) Italy has a comparative advantage in wine.

Quizplus · Accepted Answer

The Answer of Consider the following table on labor hours needed per unit of output:  Ignoring nonlabor inputs,which of the following statements is correct?
A) All of the following are correct. 
B) The opportunity cost of a computer equals 1/4 unit of wine in Italy. 
C) The opportunity cost of a computer equals 1/2 unit of wine in France. 
D) Italy has a comparative advantage in computers. 
E) Italy has a comparative advantage in wine.

Consider the Following Table on Labor Hours Needed Per Unit