If two countries produce both wheat and sugar and one country has the comparative advantage in producing wheat than the other country must have the absolute advantage producing sugar.
a. True
b. False
Indicate whether the statement is true or false
Question 2
If Japan has a comparative advantage over Canada in the production of computers, which of the following must be true?
a. Supply of unskilled labor in Japan is higher than that in Canada.
b. Japan incurs a lower input cost in the production of computers.
c. Japan incurs a higher input cost in the production of computers.
d. Japan has a lower opportunity cost in the production of computers.
e. Japan has a higher opportunity cost in the production of computers.
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