Suppose an American Worker Can Make 50 Pairs of Gloves

question 90

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day.A Bangladeshi worker,on the other hand,can produce 100 pairs of gloves or grow 200 radishes per day.Using the concepts of absolute and comparative advantage,we can say that:

• A)the United States has the comparative advantage in the production of both gloves and radishes.
• B)the United States has the comparative advantage in neither the production of gloves nor radishes.
• C)the United States has the comparative advantage in the production of gloves only.
• D)the United States has the comparative advantage in the production of radishes only.

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Definitions:

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Occurrences where the process of combining two or more companies into a single entity fails to achieve anticipated benefits, leading to operational or financial issues.

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The process of buying a company based on the assessment of its value, often with the objective of acquiring it at a price that is perceived to be below its true worth.

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Fluctuations in economic activity experienced by a country or the global economy over time, including periods of expansion, peak, contraction, and trough.

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Financial programs established by employers or governments to provide income to employees after retirement.