Q3. In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has the absolute advantage in the production of:

Q3. In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has the absolute advantage in the production of:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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

Q3. In the United States, one
worker can produce 10 tons of
steel per day or 20 tons of
chemicals per day. In the United
Kingdom, one worker can produce
5 tons of steel per day or 15 tons
of chemicals per day. The United
States has the absolute advantage
in the production of:
steel
chemicals
O neither steel nor chemicals
O both steel and chemicals

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