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Table 3-3 -According to Table 3-3:
A)Europe Has an Absolute Advantage in of

Question 86

Multiple Choice

Table 3-3
 Hours needed to make one unit of:  Amount produced in 2400 hours:  Cars  Aeroplanes  Cars  Aeroplanes  US 401606015 Europe 501504816\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}
-According to Table 3-3:


A) Europe has an absolute advantage in both goods, and the US has a comparative advantage in cars
B) Europe has an absolute advantage in both goods, and the US has a comparative advantage in neither goods
C) Europe has an absolute advantage in cars, and the US has a comparative advantage in aeroplanes
D) Europe has an absolute advantage in aeroplanes, and the US has a comparative advantage in cars

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