Suppose an American worker can make 50 pairs of gloves or grow 300 radishes per day.A Bangladeshi worker,on the other hand,can produce 100 pairs of gloves or grow 200 radishes per day.Using the concept of absolute advantage,which of the following statements is true?
A)The United States has the absolute advantage in the production of both gloves and radishes.
B)The United States does not have the absolute advantage in the production of either gloves or radishes.
C)The United States has the absolute advantage in the production of gloves,but not radishes.
D)The United States has the absolute advantage in the production of radishes,but not gloves.

Question

Quizplus · Accepted Answer

The concept of absolute advantage refers to a country's ability to produce a certain good or service using fewer resources (e.g., time, labor, and capital) than another country. In this scenario, the American worker can produce 50 pairs of gloves per day, whereas the Bangladeshi worker can produce 100 pairs of gloves per day. Therefore, Bangladesh has an absolute advantage in glove production. Similarly, the American worker can grow 300 radishes per day, while the Bangladeshi worker can grow 200 radishes per day. Hence, the United States has an absolute advantage in the production of radishes. Thus, choice D is the correct answer.

Suppose an American Worker Can Make 50 Pairs of Gloves