Suppose an American Worker Can Make 20 Pairs of Shoes

question 118

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?

• A) The United States has the absolute advantage in the production of both shoes and apples.
• B) Canada has the absolute advantage in the production of both shoes and apples.
• C) The United States has the absolute advantage in the production of shoes and Canada has the absolute advantage in the production of apples.
• D) Canada has the absolute advantage in the production of shoes and the United States has the absolute advantage in the production of apples.

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Definitions:

Behavioral Economist

A specialist in an area of economics that studies the effects of psychological, social, cognitive, and emotional factors on economic decisions.

Long-term Effects

The impact or outcomes of actions, policies, or events that are not immediate but unfold over a longer period.

Rational Decision Makers

Individuals or entities that make decisions by systematically considering all available information and maximizing their utility based on preferences.

Neoclassical Economists

Economists who focus on the determination of goods, outputs, and income distributions in markets through supply and demand.