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For a Given Amount of Resources, Japan and the UK

Question 24

Multiple Choice

For a given amount of resources, Japan and the UK can produce the following quantities of motorbikes or bicycles:
For a given amount of resources, Japan and the UK can produce the following quantities of motorbikes or bicycles:   Which statement is correct? A)  The UK has a comparative advantage in motorbikes. B)  Japan has a comparative advantage in bicycles. C)  The UK has a comparative advantage in bicycles. D)  The UK has an absolute advantage in bicycles. E)  The UK has no absolute or comparative advantage in either product. Which statement is correct?


A) The UK has a comparative advantage in motorbikes.
B) Japan has a comparative advantage in bicycles.
C) The UK has a comparative advantage in bicycles.
D) The UK has an absolute advantage in bicycles.
E) The UK has no absolute or comparative advantage in either product.

Correct Answer:

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