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murzikaleks [220]
3 years ago
12

Using the data which of the statements is correct?

Social Studies
1 answer:
katen-ka-za [31]3 years ago
7 0

Answer: B. The US has an Absolute advantage in both drill and computer production.

Explanation:

United States

Opportunity cost of producing computers = 20/10 = 2 drills

Opportunity cost of producing drills = 10/20 = 0.5 computers

Germany

Opportunity cost of producing computers = 10/2 = 5 drills

Opportunity cost of producing drills = 2/10 = 0.2 computers

The country with a Comparative advantage in producing a good is the one with the lower opportunity cost.

The country with the Absolute advantage is the one that produces more of a good than the other.

The US produces more drills and computers than German so have an Absolute advantage in both.  

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I Hope this helps

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Read 2 more answers
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