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In Canada, the Average Worker Can Produce 10 Computers or 6

Question 7

Multiple Choice

In Canada, the average worker can produce 10 computers or 6 cars a year. In the United States, the average worker can produce 12 computers or 10 cars a year. Based on the given information, which statement is correct?


A) Canada has a comparative advantage in the production of cars.
B) Canada has an absolute advantage in producing both goods.
C) The United States has an absolute advantage in both goods, but a comparative advantage in producing cars.
D) The United States has a comparative advantage in producing computers.

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