Suppose an American worker can make 100 chairs or catch 900 fish per day.On the other hand,a Chilean worker,can make 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 the United States:
A) should produce only chairs and trade with Chile to get fish.
B) should produce only fish and trade with Chile to get chairs.
C) should take advantage of Chile by trading with them.
D) 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