Suppose an American Worker Can Make 50 Pairs of Gloves

question 34

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. Which of the following statements is true?

• A) Bangladesh should specialize in glove production because it has a comparative advantage at producing gloves.
• B) Bangladesh should specialize in radish production because it has a comparative advantage at producing radishes.
• C) Bangladesh should produce both gloves and radishes because it has an absolute advantage at producing both goods.
• D) Bangladesh should produce only radishes because it has an absolute advantage at producing radishes.

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Definitions:

Ice Crystals

The solid form of water characterized by its crystalline structure, commonly seen in snowflakes, frost, and ice formations in high altitudes or polar regions.

Higher Altitudes

Regions of elevated terrain that are significantly above sea level, affecting climate, vegetation, and human activities.

Water Droplets

Small spheres of liquid water formed by condensation or precipitation in the atmosphere.

Atmospheric Pressure

The force per unit area exerted onto a surface by the weight of air above that surface in the Earth's atmosphere.