Suppose an American Worker Can Make 20 Pairs of Shoes

question 60

Multiple Choice

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day.On the other hand,a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day.Which of the following statements is true? The United States has an absolute advantage:

• A) and a comparative advantage in the production of shoes.
• B) and a comparative advantage in the production of apples.
• C) in the production of both goods and a comparative advantage in the production of neither good.
• D) in the production of both goods and a comparative advantage in the production of both goods.

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