Suppose That with 1 Unit of Labor, Canada Can Produce

question 142

Multiple Choice

Suppose that with 1 unit of labor, Canada can produce 40 TVs or 20 computers.With 1 unit of labor, Taiwan can produce 30 TVs or 10 computers.Which of the following is correct?

• A)Taiwan has a comparative advantage in the production of computers.
• B)Canada has an absolute advantage in the production of neither good.
• C)Canada has a comparative advantage in the production of computers.
• D)Taiwan has an absolute advantage in the production of computers.
• E)Taiwan has an absolute advantage in the production of TVs.

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Definitions:

Quantitative

Pertaining to, assessing, or evaluated based on the amount of something rather than its excellence.

Active Interviewing

A dynamic and interactive form of interviewing where both the interviewer and interviewee actively participate and contribute to the flow of conversation and exchange of ideas.

Spurious Correlation

A statistical relationship between two variables that appears to be causally related but is actually due to a third variable or chance.

Causal

Relating to the cause and effect relationship between two or more variables or events.