The Accompanying Table Shows Labor-Productivity ?Gures in Two Countries Facing

question 314

Multiple Choice

$$\begin{array} { | c | c | c | } \hline & \begin{array} { c } \text { Meat per Worker } \\\text { per Day }\end{array} & \begin{array} { c } \text { Houses per } \\\text { Worker per Day }\end{array} \\\hline A & 40 & 80 \\\hline B & 10 & 40 \\\hline\end{array}$$ The accompanying table shows labor-productivity ?gures in two countries facing constant costs. It can be deduced that

• A) country A has the absolute advantage in producing both meat and houses.
• B) country B has the absolute advantage in producing both meat and houses.
• C) country A has a comparative advantage in producing both meat and houses.
• D) country B has a comparative advantage in producing both meat and houses.

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