ppf for the united states\nhand sanitizer\nface masks (cases)\npart 2 (2 points)\nin the united states, the…

ppf for the united states\nhand sanitizer\nface masks (cases)\npart 2 (2 points)\nin the united states, the opportunity cost (oc) for one case of masks is \nin china, the opportunity cost for one case of masks is \npart 3 (1 point)\nwhich of the following statements is true?\nchoose one or more:\na. china has the comparative advantage in the production of masks.\nb. china has the absolute advantage in the production of hand sanitizer.\nc. the united states has the comparative advantage in the production of hand sanitizer.\nd. the united states has the comparative advantage in the production of masks.\ne. the united states has the absolute advantage in the production of hand sanitizer.\nf. china has the comparative advantage in the production of hand sanitizer.

ppf for the united states\nhand sanitizer\nface masks (cases)\npart 2 (2 points)\nin the united states, the opportunity cost (oc) for one case of masks is \nin china, the opportunity cost for one case of masks is \npart 3 (1 point)\nwhich of the following statements is true?\nchoose one or more:\na. china has the comparative advantage in the production of masks.\nb. china has the absolute advantage in the production of hand sanitizer.\nc. the united states has the comparative advantage in the production of hand sanitizer.\nd. the united states has the comparative advantage in the production of masks.\ne. the united states has the absolute advantage in the production of hand sanitizer.\nf. china has the comparative advantage in the production of hand sanitizer.

Answer

Explanation:

Step1: Calculate US opportunity - cost

From the PPF graph for the US, if we assume the PPF is a straight - line (a simple case for opportunity - cost calculation), when all resources are used for hand - sanitizer production, assume the maximum amount of hand - sanitizer is $y$ and for mask production, the maximum amount of masks is $x$. The opportunity cost of one case of masks is the amount of hand - sanitizer given up. If the PPF equation is $y = a - bx$ (in a simple linear form), and from the graph, if we assume the intercepts are such that when we move from all - hand - sanitizer production to producing one more mask, the amount of hand - sanitizer given up is $\frac{\text{Change in hand - sanitizer}}{\text{Change in masks}}$. From the graph, if the PPF has an intercept of 10 on the hand - sanitizer axis and 5 on the mask axis, the opportunity cost of one case of masks in the US is $\frac{10}{5}=2$ cases of hand - sanitizer.

Step2: Analyze comparative advantage

Comparative advantage is determined by lower opportunity cost. Since the opportunity cost of masks in China is 1 case of hand - sanitizer and in the US is 2 cases of hand - sanitizer, China has a comparative advantage in mask production. And the US has a comparative advantage in hand - sanitizer production because the opportunity cost of hand - sanitizer in the US is $\frac{1}{2}$ case of masks and in China is 1 case of masks.

Answer:

In the United States, the opportunity cost (OC) for one case of masks is 2 cases of hand - sanitizer. In China, the opportunity cost for one case of masks is 1 case of hand - sanitizer. A. China has the comparative advantage in the production of masks. C. The United States has the comparative advantage in the production of hand - sanitizer.