In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The United States has the absolute advantage in the production of:
A) steel.
B) chemicals.
C) neither steel nor chemicals.
D) both steel and chemicals.

Question

Quizplus · Accepted Answer

The United States has an absolute advantage in both steel production (10 tons per day vs 5 tons per day in the UK) and chemical production (20 tons per day vs 15 tons per day in the UK). Therefore, the best choice is D, both steel and chemicals.

In the United States, One Worker Can Produce 10 Tons