Multiple Choice
based on the following information. A worker in the U.S. can produce either 5 machines per day or 15 yards of cloth. A worker in India can produce either 1 machine per day or 5 yards of cloth.
-Which of the following statements is true?
A) India has an absolute advantage in the production of machines.
B) The U.S. has an absolute advantage in neither machines nor cloth.
C) The U.S. has a comparative advantage in machines.
D) The U.S. has a comparative advantage in cloth.
E) The U.S. does not have a comparative advantage in either product.
Correct Answer:

Verified
Correct Answer:
Verified
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