Asked by ANGELITA BROOKS on Jul 17, 2024
Verified
The following table shows per-day production data of rice and T-shirts for two countries,Cambria and Bodoni.Based on the table,it can be said that Cambria has a comparative advantage in the production of rice.
Table 19.1
?
Cambria Bodoni Tons of rice per day T-shirts per day Tons of rice per day T-shirts per day 2001000080001000\begin{array} { | c | c | c | c | } \hline { \text { Cambria } } & & { \text { Bodoni } } \\\hline \begin{array} { c } \text { Tons of rice per } \\\text { day }\end{array} & \text { T-shirts per day } & \begin{array} { c } \text { Tons of rice per } \\\text { day }\end{array} & \text { T-shirts per day } \\\hline 20 & 0 & 100 & 0 \\\hline 0 & 800 & 0 & 1000 \\\hline\end{array} Cambria Tons of rice per day 200 T-shirts per day 0800 Bodoni Tons of rice per day 1000 T-shirts per day 01000
Comparative Advantage
The ability of a country or entity to produce a good or offer a service at a lower opportunity cost than competitors, facilitating specialized trade benefits.
Production Data
Information and statistics related to the amount and types of goods and services produced within a particular period.
- Examine the advantages of trade among nations through the lens of comparative advantage.
Verified Answer
RM
Robin MartinezJul 23, 2024
Final Answer :
False
Explanation :
Comparative advantage cannot be determined without knowing the opportunity costs of producing one good over the other in each country. The table only provides production quantities, not the relative efficiency or opportunity costs.
Learning Objectives
- Examine the advantages of trade among nations through the lens of comparative advantage.
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