Table 18-1 -From Table 18-1, the United States
A) Has an Absolute

Table 18-1
$\begin{array}{r}\text { Alternate Outputs from One Day's Labor Input }\\\begin{array}{lll}& \text { Wheat } \quad\quad\quad\quad&& \text { Textiles } \quad\quad\quad\quad\\\hline \text { United States } \\ \text { (One person's/day's labor) } \quad\quad\quad& \text {12 bushels } & \text { or } & \text {3 yards } \\\\ \text { Great Britain } \\ \text { (One person's/day's labor) } & \text { 3 bushels } & \text { or } & \text {12 yards } \\\end{array}\end{array}$

-From Table 18-1, the United States

A) has an absolute advantage over Great Britain in the production of textiles.
B) has an absolute advantage over Great Britain in the production of wheat.
C) has a comparative advantage in the production of textiles.
D) should export textiles to Great Britain.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free