Answer :
To determine which of the given conclusions is most supported by the data in the table, we need to analyze the concepts of opportunity cost, comparative advantage, and absolute advantage.
### Absolute Advantage:
Absolute advantage refers to the ability of a country to produce more of a good or service with the same amount of resources than another country.
- Ships:
- Country A produces 100 ships per day.
- Country B produces 60 ships per day.
- Conclusion: Country A has the absolute advantage in producing ships because 100 is greater than 60.
- Planes:
- Country A produces 50 planes per day.
- Country B produces 20 planes per day.
- Conclusion: Country A has the absolute advantage in producing planes because 50 is greater than 20.
### Opportunity Cost and Comparative Advantage:
Comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost than another country.
#### For Country A:
- Opportunity cost of producing one ship:
[tex]\[ \text{Opportunity cost of one ship} = \frac{\text{Planes}}{\text{Ships}} = \frac{50}{100} = 0.5 \text{ planes} \][/tex]
- Opportunity cost of producing one plane:
[tex]\[ \text{Opportunity cost of one plane} = \frac{\text{Ships}}{\text{Planes}} = \frac{100}{50} = 2 \text{ ships} \][/tex]
#### For Country B:
- Opportunity cost of producing one ship:
[tex]\[ \text{Opportunity cost of one ship} = \frac{\text{Planes}}{\text{Ships}} = \frac{20}{60} \approx 0.333 \text{ planes} \][/tex]
- Opportunity cost of producing one plane:
[tex]\[ \text{Opportunity cost of one plane} = \frac{\text{Ships}}{\text{Planes}} = \frac{60}{20} = 3 \text{ ships} \][/tex]
#### Comparing Opportunity Costs:
- Ships:
- Country A: 0.5 planes per ship.
- Country B: 0.333 planes per ship.
- Conclusion: Country B has the comparative advantage in producing ships since 0.333 (Country B’s opportunity cost) is less than 0.5 (Country A’s opportunity cost).
- Planes:
- Country A: 2 ships per plane.
- Country B: 3 ships per plane.
- Conclusion: Country A has the comparative advantage in producing planes since 2 (Country A’s opportunity cost) is less than 3 (Country B’s opportunity cost).
### Conclusion:
Given the concepts of absolute and comparative advantage derived from the data in the table:
- A. Country A has a comparative advantage producing ships. Incorrect. Country B has the comparative advantage in producing ships.
- B. Country A has a comparative advantage producing planes. Correct. Country A has the comparative advantage in producing planes.
- C. Country B has an absolute advantage producing planes. Incorrect. Country A has the absolute advantage in producing planes.
- D. Country B has an absolute advantage producing ships. Incorrect. Country A has the absolute advantage in producing ships.
Therefore, the data in the table most support the conclusion:
B. Country A has a comparative advantage producing planes.
### Absolute Advantage:
Absolute advantage refers to the ability of a country to produce more of a good or service with the same amount of resources than another country.
- Ships:
- Country A produces 100 ships per day.
- Country B produces 60 ships per day.
- Conclusion: Country A has the absolute advantage in producing ships because 100 is greater than 60.
- Planes:
- Country A produces 50 planes per day.
- Country B produces 20 planes per day.
- Conclusion: Country A has the absolute advantage in producing planes because 50 is greater than 20.
### Opportunity Cost and Comparative Advantage:
Comparative advantage refers to the ability of a country to produce a good at a lower opportunity cost than another country.
#### For Country A:
- Opportunity cost of producing one ship:
[tex]\[ \text{Opportunity cost of one ship} = \frac{\text{Planes}}{\text{Ships}} = \frac{50}{100} = 0.5 \text{ planes} \][/tex]
- Opportunity cost of producing one plane:
[tex]\[ \text{Opportunity cost of one plane} = \frac{\text{Ships}}{\text{Planes}} = \frac{100}{50} = 2 \text{ ships} \][/tex]
#### For Country B:
- Opportunity cost of producing one ship:
[tex]\[ \text{Opportunity cost of one ship} = \frac{\text{Planes}}{\text{Ships}} = \frac{20}{60} \approx 0.333 \text{ planes} \][/tex]
- Opportunity cost of producing one plane:
[tex]\[ \text{Opportunity cost of one plane} = \frac{\text{Ships}}{\text{Planes}} = \frac{60}{20} = 3 \text{ ships} \][/tex]
#### Comparing Opportunity Costs:
- Ships:
- Country A: 0.5 planes per ship.
- Country B: 0.333 planes per ship.
- Conclusion: Country B has the comparative advantage in producing ships since 0.333 (Country B’s opportunity cost) is less than 0.5 (Country A’s opportunity cost).
- Planes:
- Country A: 2 ships per plane.
- Country B: 3 ships per plane.
- Conclusion: Country A has the comparative advantage in producing planes since 2 (Country A’s opportunity cost) is less than 3 (Country B’s opportunity cost).
### Conclusion:
Given the concepts of absolute and comparative advantage derived from the data in the table:
- A. Country A has a comparative advantage producing ships. Incorrect. Country B has the comparative advantage in producing ships.
- B. Country A has a comparative advantage producing planes. Correct. Country A has the comparative advantage in producing planes.
- C. Country B has an absolute advantage producing planes. Incorrect. Country A has the absolute advantage in producing planes.
- D. Country B has an absolute advantage producing ships. Incorrect. Country A has the absolute advantage in producing ships.
Therefore, the data in the table most support the conclusion:
B. Country A has a comparative advantage producing planes.
