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Suppose an American Worker Can Make 20 Pairs of Shoes

Question 120

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 United States has a comparative advantage at producing shoes.
B) Canada has a comparative advantage at producing shoes.
C) Neither country has a comparative advantage at producing shoes.
D) Both countries have a comparative advantage at producing shoes.

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