The Table Below Shows Units of Wheat and Cloth Produced

question 104

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 20.1
-Refer to Table 20.1.Which of the following statements is true?

• A)India has an absolute advantage in the production of cloth.
• B)India has an absolute advantage in the production of both wheat and cloth.
• C)The U.S.has an absolute advantage in the production of wheat but not cloth.
• D)The U.S.has an absolute advantage the production of cloth but not wheat.
• E)The U.S.has an absolute advantage in the production of both wheat and cloth.

---

Definitions:

Promotional Campaign

A planned series of activities designed to advertise and create awareness or interest in a product or service.

More Elastic

Describes a situation where a product or service's demand is more sensitive to changes in price, indicating that consumers are more likely to react to price variations.

Cost Of Overpricing

The negative financial impact experienced by setting the price of a product or service too high, leading to reduced sales volume.

Cost Of Underpricing

The financial loss incurred when a product or service is sold for less than its market value or production cost.