Given the Following Ricardo-Type Table Shows the Labor Input Required

question 18

Multiple Choice

Given the following Ricardo-type table shows the labor input required per unit of output In each of the two industries in each of the two countries:
$$\begin{array} { l l l } & \underline{\text { Shirts }} &\underline{ \text { Brandy }} \\\text { United States } & 4 \text { days } & 12 \text { days } \\\text { France } & 6 \text { days } & 12 \text { days }\end{array}$$
Which one of the following statements is correct?

• A) France's pretrade price ratio is 1 brandy = 2 shirts.
• B) The U.S. pretrade price ratio is 1 shirt = 3 brandy.
• C) The United States has an absolute advantage in both goods.
• D) France will export shirts after trade begins.