Suppose an American Worker Can Make 20 Pairs of Shoes

question 31

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 a comparative advantage in the production of shoes.
• B) Canada has a comparative advantage in the production of shoes.
• C) Comparative advantage doesn't exist in this scenario.
• D) Both countries have a comparative advantage in the production of shoes.

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Definitions:

Property

Legal rights or interests in anything with value, such as real estate, personal belongings, or intellectual property.

Repairs

The process of fixing, mending, or restoring something to its original or proper condition.

Control

The power or authority to direct, manage, oversee, or govern something or someone.

Ratification

The act of formally approving an agreement or action, often after the fact, to make it officially valid.