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.
Correct Answer:

Verified
Correct Answer:
Verified
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