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Suppose That a Worker in Country a Can Make Either

Question 134

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Suppose that a worker in Country A can make either 10 iPhones or 5 iPads each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPhones or 10 iPads each year. Country B has 200 workers. Suppose Country B's population of workers increases to 600. Country B now has:


A) an absolute advantage at producing both goods.
B) an absolute advantage at producing tablets only.
C) a comparative advantage at producing iPhones only.
D) no need to trade.

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