Suppose an American Worker Can Make 20 Pairs of Shoes

Multiple Choice

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true?

A) The U.S. has both an absolute advantage and a comparative advantage at producing shoes.
B) The U.S. has both an absolute advantage and a comparative advantage at producing apples.
C) The U.S. has an absolute advantage at producing both goods, but no comparative advantage
D) The U.S. has both an absolute advantage and a comparative advantage at producing both goods.