Assume the United States and Australia Have the Same Amount

question 119

Multiple Choice

Assume the United States and Australia have the same amount of resources.In a given time period,the United States can produce 2 tons of beef or 200,000 cars.Australia can produce 1 ton of beef or 100,000 cars.This means that

• A)The United States has a comparative advantage in beef.
• B)Australia has a comparative advantage in cars.
• C)The United States has an absolute advantage in both beef and cars.
• D)Australia has an absolute advantage in both beef and cars.

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