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For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Z

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For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Z

For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces. Which of the following is true about the comparative advantage between the two countries?
A) Australia has the comparative advantage in surfboards.
B) Australia has the comparative advantage in boomerangs.
C) New Zealand has the comparative advantage in surfboards and boomerangs.
D) New Zealand has the comparative advantage in boomerangs.

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Essentials of Economics

Edition: 4^th

Authors: Hubbard, O'Brien

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