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Suppose an American Worker Can Make 100 Chairs or Catch

Question 91
Multiple Choice

Suppose an American worker can make 100 chairs or catch 900 fish per day.On the other hand,a Chilean worker,can make 40 chairs or catch 400 fish per day.The United States has an absolute advantage in the production of both fish and chairs.This means that the United States: A) should produce only chairs and trade with Chile to get fish. B) should produce only fish and trade with Chile to get chairs. C) should take advantage of Chile by trading with them. D) can produce more fish and chairs than Chile given the same amount of workers.

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Q 92
When a producer has the ability to produce a good or service at a lower opportunity cost than others,economists say the producer: A) has an absolute advantage at producing that good. B) has a comparative advantage at producing that good. C) has no reason to trade with others. D) is efficient in production.
Q 93
When a producer has a comparative advantage in producing a good,it means the producer: A) can produce more of that good than others with the same number of workers. B) has the ability to produce the good at a lower opportunity cost than others. C) has no reason to trade with others. D) is efficient in production.
Q 94
When a producer has an absolute advantage at producing a good,it means the producer: A) can produce more of that good than others with the same amount of resources. B) has the ability to produce a good or service at a lower opportunity cost than others. C) has no reason to trade with others. D) is less efficient than other producers.
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