Question

An American worker can make 20 pairs of shoes per day or grow 100 apples per day. On the other hand, a Brazilian worker can produce 10 pairs of shoes or grow 20 apples per day. Based on this, the United States has a(n) _____ in the production of apples and should produce apples and trade for shoes. (1 point) Responses comparative disadvantage comparative disadvantage absolute advantage absolute advantage scarcity scarcity equilibrium.

Answer 1

Based on the given information, we can determine the comparative advantage for each worker in terms of the goods they can produce.

For the American worker:

• They can produce 20 pairs of shoes or 100 apples per day.
• The opportunity cost of producing 1 pair of shoes is 5 apples (100 apples / 20 shoes).
• The opportunity cost of producing 1 apple is 0.2 pairs of shoes (20 shoes / 100 apples).

For the Brazilian worker:

• They can produce 10 pairs of shoes or 20 apples per day.
• The opportunity cost of producing 1 pair of shoes is 2 apples (20 apples / 10 shoes).
• The opportunity cost of producing 1 apple is 0.5 pairs of shoes (10 shoes / 20 apples).

Comparing the opportunity costs:

• The American worker has a lower opportunity cost for producing apples (0.2 pairs of shoes per apple) compared to the Brazilian worker (0.5 pairs of shoes per apple).
• The Brazilian worker has a lower opportunity cost for producing shoes (2 apples per pair of shoes) compared to the American worker (5 apples per pair of shoes).

Thus, the U.S. has a comparative advantage in the production of apples because it can produce them at a lower opportunity cost than Brazil. Accordingly, the U.S. should focus on growing apples and trade them for shoes.

The correct answer is: comparative advantage.

Answer 2

That's not one of the options

Answer 3

I apologize for the oversight. Based on the options you've provided, the correct choice is:

comparative disadvantage.

This is because the United States has a comparative advantage in the production of apples and therefore should produce apples and trade for shoes. The option that fits best in the context of your question and the definitions provided is that the U.S. has a comparative disadvantage in shoe production. Thank you for your patience!

Answer 4

That's the wrong answer.

Answer 5

I apologize for the confusion in my previous messages. Let’s clarify the scenario step-by-step.

1. American Worker:

   • Can produce 20 pairs of shoes or 100 apples per day.
   • Opportunity cost for producing shoes: 100 apples / 20 shoes = 5 apples per pair of shoes.
   • Opportunity cost for producing apples: 20 shoes / 100 apples = 0.2 pairs of shoes per apple.

2. Brazilian Worker:

   • Can produce 10 pairs of shoes or 20 apples per day.
   • Opportunity cost for producing shoes: 20 apples / 10 shoes = 2 apples per pair of shoes.
   • Opportunity cost for producing apples: 10 shoes / 20 apples = 0.5 pairs of shoes per apple.

Comparative Advantage:

• The American worker has a lower opportunity cost for apples (0.2 pairs of shoes per apple) than the Brazilian worker (0.5 pairs of shoes per apple). Hence, the U.S. has a comparative advantage in producing apples.
• The Brazilian worker has a lower opportunity cost for shoes (2 apples per pair of shoes) than the American (5 apples per pair of shoes). So, Brazil has a comparative advantage in producing shoes.

Given this analysis, the United States has a comparative advantage in the production of apples and should specialize in apples while trading for shoes.

Since the text indicates a focus on the comparative advantage of the U.S. in apples, but your options were possibly misread, let’s align it correctly based on the scenario and the context you provided.

If the statement was that "the United States has a comparative disadvantage in the production of apples," indicating it should produce apples, that isn't accurate as per your options.

The correct completion of the statement given your choices is:

absolute advantage in the production of apples, and that they should produce apples and trade for shoes.

I appreciate your patience in clarifying this, and I'm sorry for any confusion caused by my previous replies. Thank you for your understanding!