06. If Portugal has a total of 180 man-hours of resources available for production, while England has only 60, which country has the comparative advantage in wine and which in cloth? O Portugal has the advantage in wine, England has the advantage in cloth. O England has the advantage in wine, Portugal has the advantage in cloth. O England has the advantage in both products. O Portugal has the advantage in both products. O Neither country has the advantage.

06. If Portugal has a total of 180 man-hours of resources available for production, while England has only 60, which country has the comparative advantage in wine and which in cloth? O Portugal has the advantage in wine, England has the advantage in cloth. O England has the advantage in wine, Portugal has the advantage in cloth. O England has the advantage in both products. O Portugal has the advantage in both products. O Neither country has the advantage.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

06. If Portugal has a total of 180 man-hours of resources available for production, while England has only 60, which country has the comparative advantage in wine and
which in cloth?
Portugal has the advantage in wine, England has the advantage in cloth.
England has the advantage in wine, Portugal has the advantage in cloth.
England has the advantage in both products.
Portugal has the advantage in both products.
Neither country has the advantage.

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