Final answer:
True or false, Ireland has an absolute advantage in potato production is false. An absolute advantage requires fewer resources to produce a good, often based on natural endowments. Absolute advantage differs from comparative advantage, which is the actual basis for most trade.
Step-by-step explanation:
The statement that Ireland produces more potatoes than any other country and therefore has an absolute advantage in potato production is false. A country has an absolute advantage over another country in producing a good if it uses fewer resources to produce that good. Absolute advantage is often the result of geographic or environmental factors. For example, Saudi Arabia's oil production benefits from easy extraction methods, while the United States has rich farmland ideal for growing corn and wheat.
To determine which country has the absolute advantage in green beans and tomatoes, you would need to compare the resources used by different countries in producing these goods. Absolute advantage could exist if one country could produce these goods using fewer resources than another country.
In practice, trade between countries is usually based on comparative advantage rather than absolute advantage. Comparative advantage occurs when a country can produce a good at a lower opportunity cost compared to another country, even if it does not have an absolute advantage in producing that good.