Question

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. Which of the following statements is true?

a. The U.S. has the absolute advantage in the production of both shoes and apples
b. Canada has the absolute advantage in the production of both shoes and apples
c. The U.S. has the absolute advantage in the production of shoes and Canada has the absolute advantage in the production of apples
d. Canada has the absolute advantage in the production of shoes and the U.S. has the absolute advantage in the production of apples

Answer 1

a. The U.S. has the absolute advantage in the production of both shoes and apples

Step-by-step explanation:

This statement compares the efficiency of a worker from the USA and Canada in performing two different tasks. According to this assumption, the American worker produces twice as many shoes as the Canadian worker, since the first produces 20 pairs of shoes per day, while the second produces only 10. Likewise, the American worker is 5 times more efficient than the Canadian worker in growing apples, since the American produces 100 apples per day, while the Canadian only 20. In conclusion, the U.S. has the absolute advantage n both tasks.