Alternate Outputs from One Day's Labor Input:
USA: 12 bushels of wheat or 3 yards of textiles.
India: 3 bushels of wheat or 12 yards of textiles.
From the data, the USA:
a. has an absolute advantage over India in the production of textiles.
b. has an absolute advantage over India in the production of wheat.
c. has a comparative advantage in the production of textiles.
d. should export textiles to India.
b. has an absolute advantage over India in the production of wheat.
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