12. If Portugal has a total of 180 man-hours of resources available for production, while England has only 60, which country has the absolute advantage, and which country has the comparative advantage in wine? O (a) Portugal has the absolute advantage and England has the comparative advantage (b) England has the absolute advantage and Portugal has the comparative advantage O (c) Neither country has the comparative advantage (d) Neither country has the absolute advantage O (d) cannot tell from this diagram
12. If Portugal has a total of 180 man-hours of resources available for production, while England has only 60, which country has the absolute advantage, and which country has the comparative advantage in wine? O (a) Portugal has the absolute advantage and England has the comparative advantage (b) England has the absolute advantage and Portugal has the comparative advantage O (c) Neither country has the comparative advantage (d) Neither country has the absolute advantage O (d) cannot tell from this diagram
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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Absolute advantage in international trade refers to the fact that a country can produce any particular good in more quantity or at cheaper cost in absolute terms when compared with any other country .
Comparative advantage compares the opportunity cost of production of any particular good rather than absolute cost and the country with lesser opportunity cost in production of any good has comparative advantage in production of that good .
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