The table given below shows the number of labor hours required to produce 1 umbrella and 1 bushel of corn in the U.K. and the Rest of the World. Which of the following statements is true? $$\begin{array} { | c | c | c | }
\hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \
\hline \text { l umbrella } & 3.00 & 2.00 \
\hline \text { 1 bushel of corn} & 1.00 & 0.25 \
\hline
\end{array}$$
A)The United Kingdom has a comparative advantage in the production of corn.
B)The United Kingdom has an absolute advantage in the production of umbrellas.
C)The United Kingdom has a comparative advantage in the production of umbrellas.
D)The United Kingdom has a comparative advantage in the production of both the goods.

Question

The table given below shows the number of labor hours required to produce 1 umbrella and 1 bushel of corn in the U.K. and the Rest of the World. Which of the following statements is true? $$\begin{array} { | c | c | c | } 
\hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \
\hline \text { l umbrella } & 3.00 & 2.00 \
\hline \text { 1 bushel of corn} & 1.00 & 0.25 \
\hline
\end{array}$$
A)The United Kingdom has a comparative advantage in the production of corn.
B)The United Kingdom has an absolute advantage in the production of umbrellas.
C)The United Kingdom has a comparative advantage in the production of umbrellas.
D)The United Kingdom has a comparative advantage in the production of both the goods.

Quizplus · Accepted Answer

The Answer is C

The Table Given Below Shows the Number of Labor Hours