Which state has an absolute advantage in producing wheat in Case I?
A)South Dakota
B)North Dakota
C)Neither state

Question

Quizplus · Accepted Answer

South Dakota has an absolute advantage in producing wheat because it can produce more wheat than North Dakota with the same amount of resources. In Case I, South Dakota can produce 2 tons of wheat or 1/2 tire with one hour of work, whereas North Dakota can produce only 1.5 tons of wheat or 3/4 tire with one hour of work. Therefore, South Dakota can produce more wheat per hour than North Dakota.

Which State Has an Absolute Advantage in Producing Wheat in Case