Suppose an American Worker Can Make 50 Pairs of Gloves

question 29

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day.On the other hand,a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day.Using the concept of absolute advantage,which of the following statements is true? The United States:

• A) has the absolute advantage in the production of both gloves and radishes.
• B) does not have the absolute advantage in the production of either gloves or radishes.
• C) has the absolute advantage in the production of gloves, but not radishes.
• D) has the absolute advantage in the production of radishes, but not gloves.

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Definitions:

Train Station

A facility on a railway line where trains regularly stop to load or unload passengers and/or freight.

Cross-Dock

A logistics practice where incoming shipments are unloaded, sorted, and directly reloaded onto outbound vehicles for delivery to the final destination, minimizing storage time.

Use Fee

A charge for using a service, facility, or equipment, typically levied to cover maintenance and operational costs.

Congestion

A condition of overcrowding or overburdening, often referring to heavy traffic or network data leading to delays.