In 1 year, the U.S. can produce 10 units of computer software or 5 units of computer
Question:
In 1 year, the U.S. can produce 10 units of computer software or 5 units of computer hardware. In 1 year, China can produce 3 units of software and 3 units of hardware. Based on this information,
a. The U.S. has comparative and absolute advantage in producing both goods.
b. China has comparative and absolute advantage in producing both goods.
c. China has comparative advantage in producing hardware and the U.S. has comparative advantage in producing software.
d. The U.S. has comparative advantage in producing both goods.
e. The U.S. has comparative advantage in producing hardware and China has comparative advantage in producing software.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction To Economics Social Issues And Economic Thinking
ISBN: 9780470574782
1st Edition
Authors: Wendy A. Stock
Question Posted: