Suppose that, given the same number of workers, the United States can produce five times as many computers or ten times as many airplanes as Mexico. Which of the following statements is true?
A) The United States has an absolute advantage at producing computers and Mexico has an absolute advantage at producing airplanes.
B) The United States has an absolute advantage at producing airplanes and Mexico has an absolute advantage at producing computers.
C) The United States has an absolute advantage at producing both airplanes and computers.
D) Mexico has an absolute advantage at producing both airplanes and computers.

Question

Quizplus · Accepted Answer

The United States can produce more of both computers and airplanes than Mexico with the same number of workers, indicating an absolute advantage in both goods.

Suppose That, Given the Same Number of Workers, the United