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Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and this figure shows each nation's production possibility frontier for the two goods.
-(Figure: Comparative Advantage) Look at the figure Comparative Advantage. Westland has an absolute advantage in producing:
A)oranges only.
B)peaches only.
C)both oranges and peaches.
D)neither oranges or peaches.

Question

Use the following to answer questions :
Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and this figure shows each nation's production possibility frontier for the two goods. 
-(Figure: Comparative Advantage) Look at the figure Comparative Advantage. Westland has an absolute advantage in producing:
A)oranges only. 
B)peaches only. 
C)both oranges and peaches. 
D)neither oranges or peaches.

Quizplus · Accepted Answer

Westland has an absolute advantage in producing peaches since it can produce more peaches than Eastland at any given level of production of oranges. Eastland has an absolute advantage in producing oranges since it can produce more oranges than Westland at any given level of production of peaches.

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