Japan, one worker can make 5 tons of rubber or 30 radios. In Malaysia, one worker can make 4 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell?

Japan, one worker can make 5 tons of rubber or 30 radios. In Malaysia, one worker can make 4 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter18: Trading With Other Nations

Section: Chapter Questions

Problem 10AA

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Question

In Japan, one worker can make 5 tons of rubber or 30 radios. In Malaysia, one worker can make 4 tons of rubber or 40 radios. Who has the absolute advantage in the production of rubber or radios? How can you tell?

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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