Solved

Refer to the Information Provided in Table 20 \quad \quad

Question 122

Multiple Choice

Refer to the information provided in Table 20.1 below to answer the question(s) that follow.
Table 20.1 \quad \quad \quad \quad \quad Mexico\text {Mexico}\quad \quad \quad \quad \quad \quad \quad \quad \quad Guatemala \text {Guatemala}
OrangesBananasOrangesBananas bushel/acre bushel/acre  bushel/acre bushel/acre 200050016040402012080304080120206040160108002000100\begin{array}{rrrr} \text {Oranges}& \text {Bananas}& \text {Oranges}& \text {Bananas}\\ \text { bushel/acre}&\text { bushel/acre }&\text { bushel/acre}&\text { bushel/acre }\\\hline 200 & 0 & 50 & 0 \\160 & 40 & 40 & 20 \\120 & 80 & 30 & 40 \\80 & 120 & 20 & 60 \\40 & 160 & 10 & 80 \\0 & 200 & 0 & 100 \\\hline\end{array}

-Refer to Table 20.1. Mexico has


A) a comparative advantage but not an absolute advantage in orange production.
B) a comparative advantage but not an absolute advantage in banana production.
C) an absolute advantage and a comparative advantage in banana production.
D) an absolute advantage and a comparative advantage in orange production.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions