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Suppose an American Worker Can Make 50 Pairs of Gloves

Question 87

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. The opportunity cost of one pair of gloves is:


A) lower for the United States than Bangladesh, therefore the United States has a comparative advantage at producing gloves.
B) higher for the United States than Bangladesh, therefore the United States has a comparative advantage at producing radishes.
C) the same for both the United States and Bangladesh, therefore neither country has a comparative advantage at producing gloves.
D) the same for both the United States and Bangladesh, therefore both countries have a comparative advantage at producing gloves.

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