If the United States Can Produce 10,000 Personal Computers or 20,000

question 36

Multiple Choice

If the United States can produce 10,000 personal computers or 20,000 TVs with 1 unit of resources and Japan can produce 12,000 personal computers and 36,000 TVs with 1 unit of resources

• A) Japan has a comparative advantage in personal computers.
• B) the United States has a comparative advantage in personal computers.
• C) neither country has a comparative advantage, but Japan has an absolute advantage in both personal computers and TVs.
• D) both countries have a comparative advantage in both commodities, so trade would not be beneficial to either.
• E) both countries would produce TVs and import personal computers from somewhere else.

---

Definitions:

Asset Management

The process of developing, operating, maintaining, and selling assets in a cost-effective manner, often related to investment management in finance.

Profitability

A measure of how much profit a company generates compared to its revenues.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

Liquidity

The ease with which an asset can be converted into cash without significant loss in value.