Suppose an American Worker Can Make 20 Pairs of Shoes

question 14

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.When trade opens up,the United States should produce:

• A) both goods, since they have an absolute advantage in both goods, and not trade.
• B) only shoes, since they have a comparative advantage in the production of shoes, and not trade.
• C) apples, since they have a comparative advantage in the production of apples, and not trade.
• D) only apples, since they have a comparative advantage in the production of apples, and trade for shoes.

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Definitions:

Older Adults

A demographic group typically defined as individuals aged 65 years and older.

Retirement

The period in life when one permanently leaves the workforce after years of employment, often marked by a transition to activities focused on personal interests and leisure.

Working Full Time

Employment status where individuals engage in work for a significant majority of the typical weekly working hours, often defined as 35-40 hours or more.

Older Adults

Individuals who have reached an advanced stage of life, often characterized by retirement, increased free time, and sometimes, reduced physical capabilities.