Questions
Single choice
Refer to the data available in Table 1. Assume both countries have equal quantities of resources. Assume they can each only produce cars and bananas. Table 1 shows the quantities of each product that each country could possibly produce using the resources available. Table 1: Production Possibilities for Country A and Country B [table] | Country A | Country B Maximum possible production of cars, assuming all resources are used for car production. | 1 million | 5 million Maximum possible production of bananas, assuming all resources are used for banana production. | 20 million | 35 million [/table] Which country has an absolute advantage in producing both products?
Options
A.a. Neither
B.b. Country A
C.c. Both
D.d. Country B

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The question asks which country has an absolute advantage in producing both cars and bananas, given the production possibilities.
Option a: Neither. This would be claiming that neither country has an edge in either good. However, looking at the table, Country B can produce more cars (5 mil......Login to view full explanationLog in for full answers
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