A country has two types of workers, skilled and unskilled. Workers can produce either chairs or...
A country has two types of workers, skilled and unskilled. Workers can produce either chairs or sofas. Output per worker is as follows: Output per Worker Chairs Sofas Unskilled Workers 6 4 Skilled Workers 10 6 According to the data, ▼ an absolute advantage in making either type of good. Based on comparative advantage, who should make chairs and who should make sofas? ▼ Both have Unskilled workers have Neither has Skilled workers have a comparative advantage in making chairs. ▼ Neither has Skilled workers have Unskilled workers have Both have a comparative advantage in making sofas.
Homework Answers
Answer: Based on the comparative advantage, skilled should do chairs and unskilled should do sofas.
Explanation: Skilled made 10 chairs where as unskilled did Only 6 difference is four.
Unskilled did 4 sofas where as skilled did 6 sofas difference is two.
From above statements we can say that skilled producing chairs is advantageous and unskilled producing sofas is advantageous.
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