Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Which of the following statements is true?
A) The U.S. has both an absolute advantage and a comparative advantage at producing shoes.
B) The U.S. has both an absolute advantage and a comparative advantage at producing apples.
C) The U.S. has an absolute advantage at producing both goods, but no comparative advantage
D) The U.S. has both an absolute advantage and a comparative advantage at producing both goods.
Correct Answer:
Verified
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