The table given below shows bushels of wheat and yards of cloth that the US and India can produce with one unit labor under four different situations :
| Case A: US | Case A: India | Case B: US | Case B: India | Case C: US | Case C: India | Case D: US | Case D: India | |
|---|---|---|---|---|---|---|---|---|
| Wheat (kg/man) | 4 | 1 | 4 | 3 | 4 | 1 | 4 | 2 |
| Cloth (yard/man) | 1 | 2 | 3 | 2 | 2 | 2 | 2 | 1 |
Which of the following cases illustrate that the Adam Smith principle of trade according to absolute advantage is incorrect when using the principle of comparative advantage?
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