Suppose an American Worker Can Make 50 Pairs of Gloves

question 42

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.Which of the following statements is true? Bangladesh should:

• A) specialize in glove production since it possesses the comparative advantage in glove production.
• B) despecialize in radish production since it possesses the comparative advantage in radish production.
• C) produce both gloves and radishes since it has the absolute advantage in glove production.
• D) only produce radishes since it has the absolute advantage in radish production.

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Definitions:

Claim Messages

Direct statements in communication that assert a position or viewpoint with the expectation of acceptance or acknowledgment by the recipient.

Direct Order

A command issued by someone in authority that requires immediate compliance.

Indirect Order

A communication strategy where the main point or directive is not presented at the beginning but comes after the rationale or background information.

Adjustment

A change or modification made to correct, improve, or adapt something.