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Refer to the Information Provided in Table 20 \quad \quad

Question 56

Multiple Choice

Refer to the information provided in Table 20.1 below to answer the question(s) that follow.
Table 20.1 \quad \quad \quad \quad \quad Mexico\text {Mexico}\quad \quad \quad \quad \quad \quad \quad \quad \quad Guatemala \text {Guatemala}
OrangesBananasOrangesBananas bushel/acre bushel/acre  bushel/acre bushel/acre 200050016040402012080304080120206040160108002000100\begin{array}{rrrr} \text {Oranges}& \text {Bananas}& \text {Oranges}& \text {Bananas}\\ \text { bushel/acre}&\text { bushel/acre }&\text { bushel/acre}&\text { bushel/acre }\\\hline 200 & 0 & 50 & 0 \\160 & 40 & 40 & 20 \\120 & 80 & 30 & 40 \\80 & 120 & 20 & 60 \\40 & 160 & 10 & 80 \\0 & 200 & 0 & 100 \\\hline\end{array}

-Refer to Table 20.1. Guatemala has


A) a comparative advantage in orange production.
B) an absolute advantage in orange production.
C) an absolute advantage in banana production.
D) a comparative advantage in banana production.

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