Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day.A Canadian worker,on the other hand,can produce 10 pairs of shoes or grow 20 apples per day.Which of the following statements is true?
A)The United States has a comparative advantage in the production of shoes.
B)Canada has a comparative advantage in the production of shoes.
C)Comparative advantage doesn't exist in this scenario.
D)Both countries have a comparative advantage in the production of shoes.

Question

Quizplus · Accepted Answer

The Answer of Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day.A Canadian worker,on the other hand,can produce 10 pairs of shoes or grow 20 apples per day.Which of the following statements is true?
A)The United States has a comparative advantage in the production of shoes.
B)Canada has a comparative advantage in the production of shoes.
C)Comparative advantage doesn't exist in this scenario.
D)Both countries have a comparative advantage in the production of shoes.

Suppose an American Worker Can Make 20 Pairs of Shoes