Multiple Choice
In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. If trade occurs between the United States and the United Kingdom, American firms should specialize in producing:
A) steel.
B) chemicals.
C) neither steel nor chemicals.
D) both steel and chemicals.
Correct Answer:

Verified
Correct Answer:
Verified
Q192: For China and India, the result of
Q193: Poland requires 4 hours of labor to
Q194: In the United States, one worker can
Q195: Home has a comparative advantage in wheat,
Q196: Several economists have hypothesized that the terms
Q197: Chile and Argentina each produce jellybeans and
Q198: (Figure: Indifference Curves) Of the following points
Q199: A nation will export the product in
Q200: Suppose that there is an improvement in
Q202: According to the Ricardian principle of comparative