The GDP of country A may be higher than that of country B because the workers in country A work more hours per week than workers in country B

Based on Table 3.1, which country or countries has an absolute advantage and a comparative advantage in shoes?

A) Mexico has an absolute and comparative advantage in shoes. B) The United States has an absolute and comparative advantage in shoes. C) The United States has a comparative advantage, and Mexico has an absolute advantage in shoes. D) Mexico has a comparative advantage, and the United States has an absolute advantage in shoes. E) There is not enough information to tell.

Expenses that a firm does not have to pay out of pocket are

A) wages of employees. B) taxes. C) implicit costs. D) explicit costs.