Computers Wheatcountry A 10 4country B 6 3Table shows the number of hours of labor required to produce 1 unit of output of computers and wheat in country A and B.Country ……… has an absolute advantage in computers. Country………. has an absolute advantage in wheat. Country……… has a comparative advantage in computers. Country……... has a comparative advantage in wheat. Price ratio( computers/wheat) should be between …………. and …………. for free trade.

Name: Computers Wheatcountry A 10
Uploaded: 2022-12-02T21:52:30.000Z
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Description: Computers Wheatcountry A 10 4country B 6 3Table shows the number of hours of labor required to produce 1 unit of output of computers and wheat in country A an

(Q) Computers Wheat country A 10…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Computers Wheat

country A 10 4

country B 6 3

Table shows the number of hours of labor required to produce 1 unit of output of computers and wheat in country A and B.

Country ……… has an absolute advantage in computers.
Country………. has an absolute advantage in wheat.
Country……… has a comparative advantage in computers.
Country……... has a comparative advantage in wheat.
Price ratio( computers/wheat) should be between …………. and …………. for free trade.

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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