Multiple Choice
(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the situation described therein?
A) Econoland's comparative advantage is in cabbages because its opportunity cost per ton of cabbage (0.8 ton of oranges) is lower than Macroland's.
B) Econoland's comparative advantage is in cabbages because its opportunity cost per ton of cabbages (1.25 tons of oranges) is lower than Macroland's.
C) Econoland's comparative advantage is in oranges because its opportunity cost per ton of orange (0.9 ton of cabbages) is lower than Macroland's.
D) Econoland's comparative advantage is in oranges because its opportunity cost per ton of orange (1.11 tons of cabbages) is lower than Macroland's.
Correct Answer:

Verified
Correct Answer:
Verified
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