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Table 3-3 -According to Table 3-3:
A)the US Has an Absolute Advantage

Question 27

Multiple Choice

Table 3-3
 Hours needed to make one unit of:  Amount produced in 2400 hours:  Cars  Aeroplanes  Cars  Aeroplanes  US 401606015 Europe 501504816\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}
-According to Table 3-3:


A) the US has an absolute advantage in aeroplanes, and Europe has an absolute advantage in cars
B) the US has an absolute advantage in neither goods, and Europe has an absolute advantage in both goods
C) the US has an absolute advantage in cars, and Europe has an absolute advantage in aeroplanes
D) the US has an absolute advantage in neither goods, and Europe has an absolute advantage in cars

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