QuestionJuly 15, 2025

In the U.S., it requires 20 labor hours to produce one bushel of wheat and 80 labor hours to produce one computer.In France, it requires 25 labor hours to produce one bushel of wheat and 75 labor hours to produce one computer. If the U.S.and France trade based on their comparative advantages , the U.S. will import __ and France will import __ wheat; wheat. computers; computers. wheat; computers. computers; wheat.

In the U.S., it requires 20 labor hours to produce one bushel of wheat and 80 labor hours to produce one computer.In France, it requires 25 labor hours to produce one bushel of wheat and 75 labor hours to produce one computer. If the U.S.and France trade based on their comparative advantages , the U.S. will import __ and France will import __ wheat; wheat. computers; computers. wheat; computers. computers; wheat.
In the U.S., it requires 20 labor hours to produce one bushel of wheat and 80 labor hours
to produce one computer.In France, it requires 25 labor hours to produce one bushel of
wheat and 75 labor hours to produce one computer. If the U.S.and France trade based on
their comparative advantages , the U.S. will import __ and France will import __
wheat; wheat.
computers; computers.
wheat; computers.
computers; wheat.

Solution
4.2(157 votes)

Answer

wheat; computers. Explanation 1. Calculate Opportunity Cost in the U.S. Opportunity cost of 1 bushel of wheat = \frac{80}{20} = 4 computers. Opportunity cost of 1 computer = \frac{20}{80} = 0.25 bushels of wheat. 2. Calculate Opportunity Cost in France Opportunity cost of 1 bushel of wheat = \frac{75}{25} = 3 computers. Opportunity cost of 1 computer = \frac{25}{75} \approx 0.33 bushels of wheat. 3. Determine Comparative Advantage The U.S. has a lower opportunity cost for computers (0.25 vs 0.33), and France has a lower opportunity cost for wheat (3 vs 4). 4. Identify Imports Based on Comparative Advantage The U.S. will import wheat, and France will import computers.

Explanation

1. Calculate Opportunity Cost in the U.S.<br /> Opportunity cost of 1 bushel of wheat = $\frac{80}{20} = 4$ computers. Opportunity cost of 1 computer = $\frac{20}{80} = 0.25$ bushels of wheat.<br />2. Calculate Opportunity Cost in France<br /> Opportunity cost of 1 bushel of wheat = $\frac{75}{25} = 3$ computers. Opportunity cost of 1 computer = $\frac{25}{75} \approx 0.33$ bushels of wheat.<br />3. Determine Comparative Advantage<br /> The U.S. has a lower opportunity cost for computers (0.25 vs 0.33), and France has a lower opportunity cost for wheat (3 vs 4).<br />4. Identify Imports Based on Comparative Advantage<br /> The U.S. will import wheat, and France will import computers.
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