Question

Answer the following questions using the information given by the accompanying table:

	United States	China
Number of computers produced per hour	200	500
Number of TV screens produced per hour	450	700

a. [2 points] Which country has an absolute advantage in the production of computers? Which country has an absolute advantage in the production of TV screens?

b. [2 points] What is the opportunity cost of computers in terms of TV screens in United States? What is the opportunity cost of opportunity cost of computers in terms of TV screens in China?

c. [2 points] Which product will United States export, and which product will China export? Briefly explain why.

please give the answers of part a,b,c according to table

Answer 1

Ihour computors US china 260 soo TV screen aso 700 produce more China, Can produce China) has obsolute advantage in preda of computer as it can computers in an hour then us Door has obsoute advantage in preden of Tuscreens, brazil more then us in an hour opportunity cost = cost of producing a good in terms of other which is alternative. good opportunity cost of computers in terms of TV screens in us - No. of TV screens in an hour (precherced) No. of computers in an hour. 2.25 In china = 500 uso 200 = 1.4 soo © for each compoter produced us trade off (2.25) TV screens which is opportunity cost of computer for china for each Tv. screen produced us trade off Produced us track off this computers China" 10 1 hence prodn. of less opportunity cost for china in toto computer China has comparative advantage in computers & emports computas) - less opportunity cost for us in proda of Tuscreens hence us has comparative advantage in tv screens sexports