Table 3-3 -According to Table 3-3:
A)Europe Has a Comparative Advantage in of

question 94

Multiple Choice

Table 3-3
$\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}$
-According to Table 3-3:

• A)Europe has a comparative advantage in aeroplanes, and the US has an absolute advantage in cars
• B)Europe has a comparative advantage in cars, and the US has an absolute advantage in aeroplanes
• C)Europe has a comparative advantage in cars, and the US has an absolute advantage in neither goods
• D)Europe has a comparative advantage in aeroplanes, and the US has an absolute advantage in both goods

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