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The table below shows the quantities of rice and wheat that two countries can produce in a year if ...

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The table below shows the quantities of rice and wheat that two countries can produce in a year if ...

The table below shows the quantities of rice and wheat that two countries can produce in a year if they specialize in the production of each good.

Refer to the table above. Which of the following statements is TRUE in this case?

▸ Country Y has a comparative advantage in the production of rice.

▸ Country X has an absolute advantage in the production of wheat.

▸ Country X has an absolute advantage in the production of rice.

▸ Country Y has a comparative advantage in the production of wheat.

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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