The table given below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the Rest of the World per labor hour. The Rest of the World has an absolute advantage in the production of _____. $$\begin{array} { l c c }
\hline\text { Productivity } & \text { In the United Kingdorn } & \text { In the Rest of the World } \
\hline \text { Umbrellas per labor hour } & 0.25 & 1 \
\text { Bushels of corn per labor hour } & 0.5 & 0.67\\hline
\end{array}$$
A)both the goods
B)neither corn nor umbrella
C)only umbrella
D)only corn

Question

The table given below shows the number of umbrellas and bushels of corn produced in the United Kingdom and the Rest of the World per labor hour. The Rest of the World has an absolute advantage in the production of _____. $$\begin{array} { l c c } 
\hline\text { Productivity } & \text { In the United Kingdorn } & \text { In the Rest of the World } \
\hline \text { Umbrellas per labor hour } & 0.25 & 1 \
\text { Bushels of corn per labor hour } & 0.5 & 0.67\\hline
\end{array}$$
A)both the goods
B)neither corn nor umbrella
C)only umbrella
D)only corn

Quizplus · Accepted Answer

The Rest of the World has an absolute advantage in both goods because it produces more umbrellas (1 vs. 0.25) and more bushels of corn (0.67 vs. 0.5) per labor hour than the United Kingdom.

The Table Given Below Shows the Number of Umbrellas and Bushels