Question

If country A can produce 7 boats and 21 planes, and country B can produce 5 boats and 10 planes, which country has the absolute advantage in which goods? (A) Country A in both goods(B) Country A in boats and country B in planes (C) Country A in planes and country B in boats(D) Country B in both goods

Answer 1

Answer: option A= country A in both goods is the correct answer

Explanation:

It is so obvious, country A can produce seven boats and twenty- one planes while country B can only produce

five boats and ten planes. Country A can produce two boats more than country B and eleven planes more than country B.

With these we say country A has advantage over Country B.

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