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The Table Given Below Shows the Number of Labor Hours

Question 31

Multiple Choice

The table given below shows the number of labor hours required to produce 1 umbrella and 1 bushel of corn in the U.K. and the Rest of the World. Which of the following statements is true?  Labor hours to make:  In the Urited Kingdorn  In the Rest of the World  l umbrella 3.002.00 1 bushel of corn1.000.25\begin{array} { | c | c | c | } \hline \text { Labor hours to make: } & \text { In the Urited Kingdorn } & \text { In the Rest of the World } \\\hline \text { l umbrella } & 3.00 & 2.00 \\\hline \text { 1 bushel of corn} & 1.00 & 0.25 \\\hline\end{array}


A) The United Kingdom has a comparative advantage in the production of corn.
B) The United Kingdom has an absolute advantage in the production of umbrellas.
C) The United Kingdom has a comparative advantage in the production of umbrellas.
D) The United Kingdom has a comparative advantage in the production of both the goods.

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