$$\begin{array} { | l | c | c | }
\hline & \begin{array} { c }
\text { U.S. production } \
\text { possibilities }
\end{array} & \begin{array} { l }
\text { France's production } \
\text { possibilities }
\end{array} \
\hline \text { Steel } & 100 & 25 \
\hline \text { Concrete } & 200 & 100 \
\hline
\end{array}$$
-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table,
A) the United States has a comparative advantage in the production of both goods.
B) France has an absolute advantage in the production of concrete.
C) France has a comparative advantage in the production of concrete.
D) the United States has a comparative advantage in the production of concrete.

Question

$$\begin{array} { | l | c | c | } 
\hline & \begin{array} { c } 
\text { U.S. production } \
\text { possibilities }
\end{array} & \begin{array} { l } 
\text { France's production } \
\text { possibilities }
\end{array} \
\hline \text { Steel } & 100 & 25 \
\hline \text { Concrete } & 200 & 100 \
\hline
\end{array}$$
-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table,
A) the United States has a comparative advantage in the production of both goods.
B) France has an absolute advantage in the production of concrete.
C) France has a comparative advantage in the production of concrete.
D) the United States has a comparative advantage in the production of concrete.

Quizplus · Accepted Answer

France has a comparative advantage in concrete because it sacrifices less steel per unit of concrete compared to the U.S. (0.25 vs. 0.5).

-The Above Table Shows the Tons of Steel and Concrete