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Suppose an American Worker Can Make 50 Pairs of Gloves

Question 95

Multiple Choice

Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day. On the other hand, a Bangladeshi worker can produce 100 pairs of gloves or grow 200 radishes per day. Which of the following statements is true?


A) Bangladesh should specialize in glove production because it has a comparative advantage at producing gloves.
B) Bangladesh should specialize in radish production because it has a comparative advantage at producing radishes.
C) Bangladesh should produce both gloves and radishes because it has an absolute advantage at producing both goods.
D) Bangladesh should produce only radishes because it has an absolute advantage at producing radishes.

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