Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. The workers in Country A should specialize in __________________ because they possess the ___________________ in the production of that good.
A. bananas; comparative advantage
B. tomatoes; comparative advantage
C. bananas; absolute advantage
D. tomatoes; absolute advantage
A. bananas; comparative advantage
Economics
You might also like to view...
Which of the following is most likely to be a fixed resource for the Speedy Word Processing and Résumé Company?
a. floppy disks b. typists c. computer terminals d. electricity e. paper
Economics
The perpetual problem in economics is
a. our inability to work together effectively b. our inability to satisfy our wants with the available resources c. the recognition of continual class differences d. our inability to utilize resources efficiently e. likely to be solved in resource-rich countries
Economics