Question

The number of apples and beef two countries produce on average in a month.

Country 1 : Apples 1600kg Beef 64kg

Country 2: Apples 9000kg Beef 300kg

A Which country has an absolute advantage in producing apples?

1 neither country 1 nor country 2

2 both country 1 and country 2

3 country 1

4 country 2


B Which country has a comparative advantage in producing beef?

1 country 2

2 country 1

3 neither country 1 nor country 2

4 both country 1 and country 2

Answer 1

A. 4 country 2

B. 1 country 2