Suppose an American worker can make 100 nets or catch 1000 fish per day. On the other hand, a Chilean worker can produce 40 nets or catch 400 fish per day. The United States has a(n) _____ advantage at producing nets, but does not have a(n) _____ advantage at producing fish.

Question

Quizplus · Accepted Answer

The United States has an absolute advantage in both nets and fish production because an American worker can produce more of both goods in a day than a Chilean worker. However, the question specifically asks about nets and fish separately, not comparing the two goods directly for comparative advantage.

Suppose an American Worker Can Make 100 Nets or Catch