Multiple Choice
based on the following information. A worker in the U.S. can produce either 10 chips or 20 sodas per day. A worker in Mexico can produce either 20 chips or 60 sodas per day.
-Which of the following is true?
A) The U.S. has an absolute advantage in the production of chips.
B) The U.S. has a comparative advantage in the production of sodas.
C) The U.S. has an absolute advantage in the production of sodas.
D) The U.S. has a comparative advantage in the production of chips.
E) Neither country has a comparative advantage in chips.
Correct Answer:

Verified
Correct Answer:
Verified
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