Multiple Choice
Argentina can produce 1 ton of meat (beef) using 0.1 years of labor.It can also produce 1 automobile using 2 years of labor.In order to produce 1 ton of beef,the United States uses 0.2 years of labor.It can produce an automobile using 1.5 years of labor.Argentina has
A) an absolute advantage in the production of automobiles.
B) an absolute advantage in the production of beef.
C) a comparative advantage in the production of automobiles.
D) a comparative advantage in the production of beef.
E) None of the above
Correct Answer:
Verified
Correct Answer:
Verified
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