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Suppose an American Worker Can Make 20 Pairs of Shoes

Question 1

Multiple Choice

Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day.A Canadian worker,on the other hand,can produce 10 pairs of shoes or grow 20 apples per day.Which of the following statements is true?


A) The United States has an absolute advantage and comparative advantage in the production of shoes.
B) The United States has an absolute advantage and comparative advantage in the production of apples.
C) The United States has an absolute advantage in the production of both goods,and comparative advantage in the production of neither.
D) The United States has an absolute advantage in the production of both goods,and comparative advantage in the production of both.

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