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.

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Definitions:

Unenforceable Contract

An agreement that, due to legal deficiencies or circumstances, cannot be legally compelled by a court to be executed by the parties involved.

Executory Contract

A contract under which both parties to the agreement have obligations that remain to be fulfilled; if one side has completed its obligations, the contract is no longer executory.

Unilateral And Executed

Unilateral refers to an action or agreement made or performed by one party; executed means that the action has been completed or the agreement has been fully performed.

Implied Contract

An agreement created by actions of the parties involved rather than written or spoken words, indicating an unexpressed understanding or assumption of agreement.