Greatland and Superland both produce 5 million watches in a year. The opportunity cost of producing one watch is 2 shirts in Greatland, and the opportunity cost of producing one watch is 3 shirts in Superland
Which of the following statements is true?
A) Superland has a comparative advantage in producing watches.
B) Superland has an absolute advantage in producing watches.
C) Greatland has a comparative advantage in producing watches.
D) Greatland has an absolute advantage in producing watches.
Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples in a year or 500 pounds of oranges. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.
C
You might also like to view...
Gains in railroad productivity were caused by:
a. more powerful locomotives. b. automatic couplers. c. air brakes. d. All of the above are correct. e. Only a and b are correct.
The United States' economy is considered to be at full employment when:
A. about 4-5 percent of the total population is unemployed. B. 90 percent of the labor force is employed. C. about 4-5 percent of the labor force is unemployed. D. 100 percent of the labor force is employed.