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If the US Could Produce 5 Televisions Per Hour of Labor and Labor

question 134

Essay

If the U.S. could produce 5 televisions per hour of labor and China could produce 3 televisions per hour of labor, would it necessarily follow that the U.S. should specialize in television production?
Explain your answer using the concepts of comparative and or absolute advantage.


Definitions:

Availability

Refers to how easily something can be accessed or retrieved from memory, influencing how likely people are to use that information when making decisions or judgments.

Counterfactual Thinking

involves imagining alternative scenarios and outcomes that might have occurred but didn't.

Inevitable Outcomes

Results or consequences that are certain to happen and cannot be avoided or changed.

Predictable Outcomes

Results or consequences that can be anticipated due to known factors, patterns, or previous observations.

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