Question

Exhibit 15-3 Potatoes and wheat output (tons per day) Country Potatoes Wheat United States 4 2 Ireland 3 1 In Exhibit 15-3, the United States has an absolute advantage in producing: Group of answer choices

Answer 1

The answer is "Both potatoes and wheat"

Step-by-step explanation:

• The actual value of US production is a productivity gain, which is the value of potatoes and wheat, since it will yield more with a given day than in Ireland.
• Unless the country has it, otherwise nation A (USA) created the product more for country B (Ireland), the benefit between two commodities.
• Instead of the national comparative benefit, foreign trade is based on the concept of competitive advantage.