Table 34-1
?
Alternate Outputs from One Day’s Labor Input
?
Wheat
?
Textiles
United States
?
?
?
(one person’s/day’s labor)
12 bushels
or
3 yards
?
?
?
?
Great Britain
?
?
?
(one person’s/day’s labor)
3 bushels
or
12 yards
?
From Table 34-1, 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.
Answer: B
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