Figure 18-5 -From the Graph in Figure 18-5 (Curves Show Output Per

question 145

Multiple Choice

Figure 18-5

-From the graph in Figure 18-5 (curves show output per unit of labor input) , one can infer that

• A) Japan has an absolute advantage in TVs and computers, but a comparative advantage only in TVs.
• B) Japan has only a comparative advantage in TVs.
• C) Japan has an absolute advantage in both TVs and computers, but a comparative advantage only in computers.
• D) China has a comparative advantage in computers.

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Definitions:

Back-To-School Shopping

The period in which students and their parents purchase school supplies and apparel before the new school year begins.

Spending

The action of using money to purchase goods or services.

Spending

The act of using money to purchase goods or services.

Income

Funds obtained, often on a recurring schedule, as a result of work or investment profits.