Multiple Choice
Suppose that for each automobile Japan produces it must forego producing 40 computers.The United States must forego producing 80 computers for each automobile it produces.Which of the following is true?
A) Japan has a comparative advantage in producing computers.
B) the U.S.has a comparative advantage in producing computers.
C) the U.S.has a comparative advantage in producing automobiles.
D) the U.S.has an absolute advantage in producing automobiles.
E) the opportunity cost of producing computers is the same for Japan and the U.S.
Correct Answer:
Verified
Correct Answer:
Verified
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