The table below presents information about the productivity

The table below presents information about the productivity of digital cameras and personal computers in the United States and Japan. The data are presented in units of output per hour of work. Use this information to answer the following multiple choice question.

Solution

Opporunity cost of Digital camera for Japan = 3 / 6 = 0.5 personal computers

Opporunity cost of personal computers for Japan = 6 / 3 = 2 Digital camera

Opporunity cost of Digital camera for US = 2 / 8 = 0.25 personal computers

Opporunity cost of personal computers for US = 8 / 2 = 4 Digital camera

From the above, four statements, it appears that the Japan has comparative advantege in personal computers and the US has comparative advantage in the Digital camera.

So our first two options are incorrect given in the question.

Now ,we know that the Japan makes more personal computers than US, so Japan has absolute advantge in the personal computers.

So the right answer is

Japan has an absolute advantage in producing personal computers.