Suppose an American Worker Can Make 20 Pairs of Shoes

question 1

Multiple Choice

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day.A Canadian worker,on the other hand,can produce 10 pairs of shoes or grow 20 apples per day.Which of the following statements is true?

• A)The United States has an absolute advantage and comparative advantage in the production of shoes.
• B)The United States has an absolute advantage and comparative advantage in the production of apples.
• C)The United States has an absolute advantage in the production of both goods,and comparative advantage in the production of neither.
• D)The United States has an absolute advantage in the production of both goods,and comparative advantage in the production of both.

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Definitions:

Diversification Strategy

A diversification strategy is used by companies that are adding new products, product lines, or businesses to their existing core products, product lines, or businesses.

Fleishman Job-Analysis

A systematic method for evaluating the skills, abilities, and knowledge required for specific jobs, developed by Edwin A. Fleishman.

Taxonomy

A system of classification that organizes concepts, objects, or information into categories based on shared characteristics or attributes.

Mental Processes

The internal, covert activities of our minds, such as thinking, feeling, and remembering.