Suppose an American Worker Can Make 20 Pairs of Shoes

question 12

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.The United States should:

• A)produce both goods,since they have an absolute advantage in both goods,and not trade.
• B)produce only shoes,since they have a comparative advantage in the production of shoes,and not trade.
• C)produce apples,since they have a comparative advantage in the production of apples,and not trade.
• D)produce apples,since they have a comparative advantage in the production of apples,and trade for shoes.

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Definitions:

Network Resources

Various assets available over a network, such as printers, files, data, or applications, that can be shared among devices connected to the network.

Small Business

An independently owned and operated company that is limited in size and revenue according to the industry and country in which it operates.

Router

A networking device that forwards data packets between computer networks, providing an interface between local networks and the internet.

Internet Access Provider

A company that provides individuals and organizations access to the Internet, typically for a fee.