The Table Given Below Represents Butter and Ham Production by Two

The table given below represents butter and ham production by two countries Norway and Sweden.Table 2.5

-Assume that the United States uses 20 worker-hours to produce 1 computer and 5 worker-hours to produce 1 unit of food; assume also that Japan uses 10 worker-hours to produce 1 computer and 30 worker-hours to produce 1 unit of food. Which of the following statements is true?

A) Japan has the comparative advantage in food production.
B) The United States has the comparative advantage in food production.
C) The United States has the absolute advantage in food production.
D) The United States has a lower opportunity cost for making computers.
E) Japan has a lower opportunity cost for making food.

Correct Answer:

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