(Table: United States and China Production Per Worker in Apparel

question 11

Multiple Choice

(Table: United States and China Production per Worker in Apparel, Textiles, and Wheat in 2014) In the upper part of the table, the productivity of workers in the textile and apparel sectors is given for the United States and China. The table shows that the United States has an absolute advantage in:

• A) textile manufacturing.
• B) apparel manufacturing.
• C) neither textile nor apparel manufacturing.
• D) both textile and apparel manufacturing.

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Definitions:

Economy

The large set of interrelated economic production and consumption activities that aid in determining how scarce resources are allocated.

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A medium of exchange that facilitates the transfer of goods and services, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

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Sums of money borrowed that are expected to be paid back with interest over a specified period.