The Table Above Shows United States and United Kingdom Production

question 59

Multiple Choice

The table above shows United States and United Kingdom production of wheat (bushels per hour) and cloth (yards per hour) .
According to Adam Smith,which of the following is true?

• A)The United States has an absolute advantage in the production of wheat.
• B)The United States has an absolute advantage in the production of cloth.
• C)There is no basis for trade between these countries.
• D)The United States will gain more from trade than the United Kingdom.

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