Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Suppose that a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has an absolute advantage in:
A) the production of bananas, but not tomatoes.
B) the production of both bananas and tomatoes.
C) the production of tomatoes, but not bananas.
D) neither good.

Question

Quizplus · Accepted Answer

Country B has an absolute advantage in the production of tomatoes because a worker can produce more tomatoes (6) compared to a worker in Country A (5). However, Country A has an absolute advantage in the production of bananas since a worker can produce more bananas (25) compared to a worker in Country B (18).

Suppose That a Worker in Country a Can Make Either