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.The United States should:
A) produce both goods,since they have an absolute advantage in both goods,and not trade.
B) produce only shoes,since they have a comparative advantage in the production of shoes,and not trade.
C) produce apples,since they have a comparative advantage in the production of apples,and not trade.
D) produce apples,since they have a comparative advantage in the production of apples,and trade for shoes.
Correct Answer:

Verified
Correct Answer:
Verified
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