Answer to Question #130726 in Macroeconomics for OBVIOUS

Question

Country A can produce 20 units of maize or 10 units of bananas. Country B can produce
30 units of maize or 20 units of bananas. Assuming constant opportunity costs, which of
the following statements are correct?
a. Country B has an absolute advantage in the production of maize.
b. Country B has an absolute advantage in the production of bananas.
c. Country A has a relative advantage in the production of bananas.
[1] All the statements are correct.
[2] a and b
[3] a and c
[4] b and c
[5] c

Answer 1

5 c