The Table Below Shows Units of Wheat and Cloth Produced

The table below shows units of wheat and cloth produced by each worker per day in both the countries. Table 20.1 Which of the following can be inferred from the information provided in Table 20.1?

A) India has a comparative advantage in the production of wheat.
B) India has a comparative advantage in the production of both wheat and cloth.
C) It will be beneficial for the U.S.to produce and export wheat.
D) India will be better off by producing and exporting cloth.
E) The U.S.has a comparative advantage in the production of both wheat and cloth.

Correct Answer:

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