Assume that the US can produce corn at a lower opportunity cost than South Korea and South Korea can produce cars at a lower opportunity cost than the US. Which of the following is not true? a. south korea should specialize production in cars b. both countries have a comparative advantage c. the us should specialize production in corn d. the us has an absolute advantage in production of corn and cars

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
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Chapter33: International Trade
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Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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Assume that the US can produce corn at a lower opportunity cost than South Korea and South Korea can produce cars at a lower opportunity cost than the US. Which of the following is not true?

a. south korea should specialize production in cars

b. both countries have a comparative advantage

c. the us should specialize production in corn

d. the us has an absolute advantage in production of corn and cars

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