ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Table. Sales per employee for the apparel and textile industries in the United States
and China, as well as bushels per worker in producing wheat
Apparel
Textile
Wheat
Wheat /Apparel
Ratio
Wheat
United States
Sales/Employee
Wheat /Apparel
Ratio
$56,000
$165,000
Comparative Advantage
Bushels/Worker
12, 260
0.22 (-12260/56000)
12, 260
Comparative Advantage
0.22 (-12260/56000)
Wheat/Textile Ratio 0.07 (-12260/165000)
Source: Feenstra and Taylor (2015).
Given the information in this table, a worker in the U.S.
China
Sales/Employee
$23,000
$27,000
Bushels/Worker
300
0.01 (300/23000)
300
0.01 (300/23000)
0.01 (-300/27000)
a worker in the U.S. is 6.1 times more productive in textile production than a worker in China
O a worker in the U.S. is 6.1 times less productive in textile production than a worker in China
O Workers in textile industry have the same productivity in both countries
O a worker in the U.S. is 2.4 times more productive in textile production than a worker in China
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Transcribed Image Text:Table. Sales per employee for the apparel and textile industries in the United States and China, as well as bushels per worker in producing wheat Apparel Textile Wheat Wheat /Apparel Ratio Wheat United States Sales/Employee Wheat /Apparel Ratio $56,000 $165,000 Comparative Advantage Bushels/Worker 12, 260 0.22 (-12260/56000) 12, 260 Comparative Advantage 0.22 (-12260/56000) Wheat/Textile Ratio 0.07 (-12260/165000) Source: Feenstra and Taylor (2015). Given the information in this table, a worker in the U.S. China Sales/Employee $23,000 $27,000 Bushels/Worker 300 0.01 (300/23000) 300 0.01 (300/23000) 0.01 (-300/27000) a worker in the U.S. is 6.1 times more productive in textile production than a worker in China O a worker in the U.S. is 6.1 times less productive in textile production than a worker in China O Workers in textile industry have the same productivity in both countries O a worker in the U.S. is 2.4 times more productive in textile production than a worker in China
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