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Given the Following Ricardo-Type Table Showing the Amount of Labor

Question 22

Multiple Choice

Given the following Ricardo-type table showing the amount of labor input required to produce one unit of output of each of the two goods in each of the two countries:
 Wheat  Clothing  United Kingdom 6 days 5 days  United States 4 days 3 days \begin{array}{lll}&\underline{\text { Wheat }}&\underline{\text { Clothing }}\\\text { United Kingdom } & 6 \text { days } & 5 \text { days } \\\text { United States } & 4 \text { days } & 3 \text { days }\end{array}


A) The United Kingdom has an absolute advantage in neither good.
B) The United States has a comparative advantage in wheat.
C) The United States has a comparative advantage in both goods.
D) A post-trade price ratio (terms of trade) of 1 wheat:1.5 clothing is a feasible
Equilibrium post-trade price ratio.

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