Multiple Choice
In India 3 units of labour are needed to produce 1 unit of cloth and 5 units of labour are needed to produce 1 unit of food;in Australia 2 units of labour are needed to produce 1 unit of cloth and 2 units of labour are needed to produce 1 unit of food.It is correct to state that
A) India has a comparative advantage in producing cloth.
B) India has an absolute advantage in producing cloth.
C) India has no comparative advantage with cloth or wheat.
D) Australia has a comparative advantage in producing cloth.
Correct Answer:
Verified
Correct Answer:
Verified
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