SSC MTS EXAM

Detailed explanation-1: -The USA has an absolute advantage in both of the goods. This is because it has the ability to produce more of the two products than Japan. Japan has a comparative advantage in producing airplanes. This is because it has the ability to produce airplanes at a lower opportunity cost than the USA.

Detailed explanation-2: -a) The country with the absolute advantage in producing cars is the United States. because they are able to produce 1200 cars for every 400 cars China produces. The United States and China both have an absolute advantage in producing computers because they both produce 200 computers.

Detailed explanation-3: -1 Ton of Grain (in terms of cars given up) U.S. d. Neither country has an absolute advantage in producing cars, since they’re equally productive (the same output per worker); the United States has an absolute advantage in producing grain, since it is more productive (greater output per worker). e.