The Table Below Shows Units of Wheat and Cloth Produced

question 109

Multiple Choice

The table below shows units of wheat and cloth produced by each worker per day in both the countries.Table 20.1

-The difference between absolute and comparative advantage is that:

• A)absolute advantage refers to input cost, while comparative advantage refers to opportunity cost.
• B)absolute advantage refers to opportunity cost, while comparative advantage refers to input cost.
• C)absolute advantage is applicable only to individuals, and comparative advantage is applicable only to countries.
• D)absolute advantage is applicable only to countries, and comparative advantage is applicable only to individuals.
• E)absolute advantage is applicable to international trade, while comparative advantage applies to exchange of goods in the domestic market.