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.

Question

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.

Quizplus · Accepted Answer

The Answer of 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.

Consider the Following Information on Labor Hours Needed Per Unit