In the United States, One Worker Can Produce 10 Tons

question 201

Multiple Choice

In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. If trade occurs between the United States and the United Kingdom, American firms should specialize in producing:

• A) steel.
• B) chemicals.
• C) neither steel nor chemicals.
• D) both steel and chemicals.

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