Suppose an American worker can make 100 chairs or catch 1,000 fish per day.A Chilean worker,on the other hand,can produce 40 chairs or catch 400 fish per day.The United States has an absolute advantage in the production of both fish and chairs.This means that:
A)the United States should produce both goods and not trade with Chile.
B)the United States should produce only fish and trade with Chile to get chairs.
C)the United States should take advantage of Chile by trading with them.
D)the United States can produce more fish and chairs than Chile,given the same amount of workers.

Question

Quizplus · Accepted Answer

The United States has an absolute advantage because it can produce more of both goods (chairs and fish) than Chile with the same amount of workers.

Suppose an American Worker Can Make 100 Chairs or Catch