Productivity - AP Macroeconomics
Card 0 of 4
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the absolute advantage in producing computers?
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the absolute advantage in producing computers?
Absolute advantage is determined by which country can produce more, regardless of efficiency. Country A can produce more computers than Country B, so it has the absolute advantage in producing computers.
Absolute advantage is determined by which country can produce more, regardless of efficiency. Country A can produce more computers than Country B, so it has the absolute advantage in producing computers.
Compare your answer with the correct one above
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the comparative advantage in producing computers?
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the comparative advantage in producing computers?
Country B can produce 4 computers or 6 cars. 
, so Country B must give up 1.5 cars to make a computer. Country A can make 5 computers or 10 cars. 
, so Country A must give up producing 2 cars to make 1 computer.
Country B can produce 4 computers or 6 cars.
Compare your answer with the correct one above
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the absolute advantage in producing computers?
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the absolute advantage in producing computers?
Absolute advantage is determined by which country can produce more, regardless of efficiency. Country A can produce more computers than Country B, so it has the absolute advantage in producing computers.
Absolute advantage is determined by which country can produce more, regardless of efficiency. Country A can produce more computers than Country B, so it has the absolute advantage in producing computers.
Compare your answer with the correct one above
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the comparative advantage in producing computers?
Country A can produce 10 cars or 5 computers. Country B can produce 6 cars or 4 computers.
Which country has the comparative advantage in producing computers?
Country B can produce 4 computers or 6 cars. , so Country B must give up 1.5 cars to make a computer. Country A can make 5 computers or 10 cars. , so Country A must give up producing 2 cars to make 1 computer.
Country B can produce 4 computers or 6 cars.
Compare your answer with the correct one above