According to the information in the table, which of the following statements is true if both countries have the same number of workers? One hour of labor is used to produce the following amounts of cheese and butter for each country: Country A B Cheese 200 units 150 units Butter 600 units 300 units Country A has an absolute advantage in butter but a comparative advantage in cheese. O Country B has a comparative advantage in butter but no absolute advantage in either good. Country A has both an absolute and a comparative advantage in cheese. Country B has an absolute advantage in cheese, but without more information, it is not possible to tell in which product it has a comparative advantage. O Country A has an absolute advantage in cheese but a comparative advantage in butter.
According to the information in the table, which of the following statements is true if both countries have the same number of workers? One hour of labor is used to produce the following amounts of cheese and butter for each country: Country A B Cheese 200 units 150 units Butter 600 units 300 units Country A has an absolute advantage in butter but a comparative advantage in cheese. O Country B has a comparative advantage in butter but no absolute advantage in either good. Country A has both an absolute and a comparative advantage in cheese. Country B has an absolute advantage in cheese, but without more information, it is not possible to tell in which product it has a comparative advantage. O Country A has an absolute advantage in cheese but a comparative advantage in butter.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:According to the information in the table, which of the following statements is true if
both countries have the same number of workers?
One hour of labor is used to produce the following amounts of cheese and butter for
each country:
Country
A
B
Cheese
200 units
150 units
Butter
600 units
300 units
Country A has an absolute advantage in butter but a comparative advantage in cheese.
O Country B has a comparative advantage in butter but no absolute advantage in either good.
Country A has both an absolute and a comparative advantage in cheese.
Country B has an absolute advantage in cheese, but without more information, it is not possible
to tell in which product it has a comparative advantage.
O Country A has an absolute advantage in cheese but a comparative advantage in butter.
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