Multiple Choice
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year.Country A has 200 workers.Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year.Country B has 400 workers.The workers in Country A should specialize in __________________ because they possess the ___________________ in the production of that good.
A) bananas; comparative advantage
B) tomatoes; comparative advantage
C) bananas; absolute advantage
D) tomatoes; absolute advantage
Correct Answer:

Verified
Correct Answer:
Verified
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