Asked by Greyson Grubb on May 30, 2024

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(Figure: The Production Possibility Frontiers for Jackson and Tahoe) Use Figure: The Production Possibility Frontiers for Jackson and Tahoe.In autarky,Jackson produces and consumes 30 head of cattle and 80 bushels of wheat,while Tahoe produces and consumes 80 head of cattle and 60 bushels of wheat._____ has a(n) _____ advantage in the production of _____.

A) Jackson;comparative;cattle
B) Tahoe;comparative;wheat
C) Jackson;comparative;wheat
D) Jackson;absolute;cattle

Comparative Advantage

The ability of a country, company, or individual to produce a good or service at a lower opportunity cost than competitors.

Autarky

An economic policy or situation in which a country is self-sufficient and does not engage in international trade.

Cattle

Large domesticated bovines raised for their meat, milk, or hides, but in economic context, it broadly relates to agricultural commodities.

  • Locate the origins of comparative advantage in the sphere of international trade.
  • Describe the differences characterizing absolute and comparative advantages.
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Yakelin Rodriguez-AgueroMay 31, 2024
Final Answer :
C
Explanation :
Comparative advantage is determined by who has the lower opportunity cost in producing a good. Without specific numbers from the Production Possibility Frontiers (PPFs), we can't calculate the exact opportunity costs. However, given that the question specifies autarky production and consumption levels, we infer comparative advantage based on the context provided. Since Jackson is producing both cattle and wheat, but the question specifically contrasts their production choices, we deduce that Jackson has a comparative advantage in the good they produce more efficiently relative to Tahoe, which in this context is implied to be wheat. Comparative advantage allows a country to produce a good at a lower opportunity cost than another country.