Question

Table 1 Output per labor hour

Country	Tons of Steel	TVs
United States	15	45
United Kingdom	10	20

Referring to Table 1, the United States has the absolute advantage in the production of:

A) Steel
B) TVs
C) Both steel and TVs
D) Neither steel nor TVs

11.

Referring to Table 1, the opportunity cost of one ton of steel in terms of TVs

A) is 45 TVs for the United States and 15 TVs for the United Kingdom.
B) is 15 TVs for the United States and 20TVs for the United Kingdom.
C) is 15/45 = 1/3 of a TV for the United States and 15/20 = 3/4 of a TV for the United Kingdom.
D) is 45/15 = 3 TVs for the United States and 20/10 = 2 TVs for the United Kingdom.

12.

Referring to Table 1, the opportunity cost of one TV in terms of steel

A) is 15 tons of steel for the United States and 10 tons of steel for the United Kingdom.
B) is 10 tons of steel for the United States and 20 tons of steel for the United Kingdom.
C) is 15/45 = 1/3 of a ton of steel for the United States and 10/20 = 1/2 of a ton of steel for the United Kingdom.
D) is 45/15 = 3 tons of steel for the United States and 20/15 tons of steel for the United Kingdom.

13.

Referring to Table 1, the United Kingdom has a comparative advantage in the production of:

A) Steel
B) Televisions
C) Both steel and televisions
D) Neither steel nor televisions

14.

Referring to Table 1, based on the principle of comparative advantage the United States should export

A) steel
B) TVs
C) both steel and TVs
D) neither steel nor TVs