he table shows the amount of cherries or apples that Chile and Argentina can produce using one day of labor. The opportunity cost of producing 1 cherry is _____ in Chile and _____ in Argentina. _____ has a comparative advantage in cherry production. OUTPUT PER WORKER PER DAY CHILE 80 CHERRIES/ARGENTINA 60 CHERRIES CHILE 40 APPLES/ARGENTINA 20 APPLES A. 2 apples; 3 apples; Argentina B. 0.5 apple; 0.33 apple; Chile C. 2 apples; 3 apples; Chile D. 0.5 apple; 0.33 apple; Argentina

he table shows the amount of cherries or apples that Chile and Argentina can produce using one day of labor. The opportunity cost of producing 1 cherry is ___ in Chile and _ in Argentina. ___ has a comparative advantage in cherry production. OUTPUT PER WORKER PER DAY CHILE 80 CHERRIES/ARGENTINA 60 CHERRIES CHILE 40 APPLES/ARGENTINA 20 APPLES A. 2 apples; 3 apples; Argentina B. 0.5 apple; 0.33 apple; Chile C. 2 apples; 3 apples; Chile D. 0.5 apple; 0.33 apple; Argentina

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter18: International Trade And Finance

Section: Chapter Questions

Problem 2SQ

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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

The table shows the amount of cherries or apples that Chile and Argentina can produce using one day of labor. The opportunity cost of producing 1 cherry is _____ in Chile and _____ in Argentina. _____ has a comparative advantage in cherry production.

OUTPUT PER WORKER PER DAY

CHILE 80 CHERRIES/ARGENTINA 60 CHERRIES

CHILE 40 APPLES/ARGENTINA 20 APPLES

A. 2 apples; 3 apples; Argentina

B. 0.5 apple; 0.33 apple; Chile

C. 2 apples; 3 apples; Chile

D. 0.5 apple; 0.33 apple; Argentina

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