-Refer to Table 3-5. Which country has an absolute or comparative advantage in each product?
A) Japan has an absolute advantage in both goods, and Canada has a comparative advantage in cars.
B) Japan has an absolute advantage in both goods, and Canada has a comparative advantage in neither good.
C) Japan has an absolute advantage in cars, and Canada has a comparative advantage in airplanes.
D) Japan has an absolute advantage in airplanes, and Canada has a comparative advantage in cars.

Question

-Refer to Table 3-5. Which country has an absolute or comparative advantage in each product?
A) Japan has an absolute advantage in both goods, and Canada has a comparative advantage in cars. 
B) Japan has an absolute advantage in both goods, and Canada has a comparative advantage in neither good. 
C) Japan has an absolute advantage in cars, and Canada has a comparative advantage in airplanes. 
D) Japan has an absolute advantage in airplanes, and Canada has a comparative advantage in cars.

Quizplus · Accepted Answer

The Answer of 
-Refer to Table 3-5. Which country has an absolute or comparative advantage in each product?
A) Japan has an absolute advantage in both goods, and Canada has a comparative advantage in cars. 
B) Japan has an absolute advantage in both goods, and Canada has a comparative advantage in neither good. 
C) Japan has an absolute advantage in cars, and Canada has a comparative advantage in airplanes. 
D) Japan has an absolute advantage in airplanes, and Canada has a comparative advantage in cars.