If with One Unit of Labor the U

question 69

Multiple Choice

If with one unit of labor the U.S. can produce 20 units of computer software and 10 units of computer hardware and China can produce 6 units of software and 4 units of hardware then

• A)the United States has a comparative and absolute advantage in both goods.
• B)China has a comparative and absolute advantage in both goods.
• C)China has a comparative advantage in hardware and the U.S. has a comparative advantage in software.
• D)the United States has a comparative advantage in both goods.

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Definitions:

Accumulated Stock

The total amount of a particular item or asset gathered or amassed over a period.

Stock Dissipation Rate

The rate at which a stock or resource is used up or depleted over time.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, leading to the greenhouse effect and global warming.

Stock Dissipation Rate

The rate at which a stock resource, like fish in a fishery or trees in a forest, is used up or depleted over time.