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AP® Macroeconomics

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Car and Truck Production

APMACR-CG9HG1

In Country $A$, 40 workers can produce one car and 80 workers to produce one truck in a single day. In Country $B$, 10 workers can produce one car and 40 workers can produce one truck in a single day.

Which of the following is true?

A

Country $A$ can produce more cars than country $B$.

B

Country $B$ has the absolute advantage in the production of trucks but not cars.

C

Country $B$ has the comparative advantage in the production of trucks.

D

Country $A$ should specialize in the production of cars.

E

Country $B$ has the comparative advantage in the production of cars.