Question

Question 6(Multiple Choice Worth 5 points)

(05.04 MC)


Worker hours to produce one unit of natural gas Worker hours to produce one unit of oil
Brazil
4
9
Argentina
2
10
Mexico
3
7
United States
1
6


According to the chart, which country has the comparative advantage in oil production?
Brazil
Mexico
Argentina
United States

Answer 1

i think the correct answer would be brazil

Step-by-step explanation:

Answer 2

United States

Step-by-step explanation:

In this case, the United States has the comparative advantage in oil production because it requires relatively fewer hours of work (only 6 hours, compared to 10 of Argentina, 9 of Brazil, and 7 of Mexico) in order to produce one unit of oil. As we can see in the chart, the United States has the absolute advantage in the production of both goods, but if these countries start to trade among them, they can specialize in the production of the goods that require relative fewer hours of work and buy the other product to the country who specializes in its production.