On the white space on your bubble sheet, draw a chart and determine which country has absolute and comparative advantage in the product of the goods listed...

The US can produce either 12 TV's or 3 computers. With the same amount of resources, Japan can produce 15 TV's or 3 computers. The two countries want to trade.

16. Which country has absolute advantage in the production of TV's?

*

A. US

B. Japan

C. Both countries have absolute advantage.

D. Neither country has absolute advantage.