Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the absolute advantage in wine? a) Portugal b) England c) Both d) Neither e) Can't tell
Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the absolute advantage in wine? a) Portugal b) England c) Both d) Neither e) Can't tell
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Assuming labor is the only resource and England has 60 man-hours (mhrs) and Portugal 180 mhrs of labor resource available for production, which country has the
a) Portugal |
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b) England |
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c) Both |
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d) Neither |
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e) Can't tell |
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90
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8 8 8 8 8 8
60
50
40
30
20
10
0
0
England
PPF
10 20 30 40 50
60
cloth
wine
90
80
70
60
50
40
30
20
10
0
0
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Portugal
PPF
30 40
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60
cloth"
Transcribed Image Text:wine
90
80
70
8 8 8 8 8 8
60
50
40
30
20
10
0
0
England
PPF
10 20 30 40 50
60
cloth
wine
90
80
70
60
50
40
30
20
10
0
0
10
20
Portugal
PPF
30 40
50
60
cloth
Expert Solution
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Step 1: Define Absolute Advantage:
Absolute advantage refers to a condition where a country, individual, or entity can produce a particular good or service more efficiently and with fewer resources compared to others, allowing them to generate higher output or lower costs. It represents a competitive advantage based on inherent capabilities or technology.
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