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.The opportunity cost of a pair of shoes is __________ for the United States than Canada,so Canada has the ______________ advantage in shoe production.

Question

Quizplus · Accepted Answer

The opportunity cost of a pair of shoes for the US worker is 5 apples (100/20), while for the Canadian worker it is 2 apples (20/10). Therefore, it is higher for the US worker, indicating that they have a comparative disadvantage in shoe production compared to Canada.

Suppose an American Worker Can Make 20 Pairs of Shoes