Table 3-3
Assume that Indonesia and India can switch between producing rice and bananas at a constant rate.

-Refer to Table 3-3.For which good(s)does Indonesia have a comparative advantage
A) rice and bananas.
B) rice but not bananas.
C) bananas but not rice.
D) nether rice nor bananas.

Question

Table 3-3
Assume that Indonesia and India can switch between producing rice and bananas at a constant rate.
 
-Refer to Table 3-3.For which good(s)does Indonesia have a comparative advantage
A) rice and bananas. 
B) rice but not bananas. 
C) bananas but not rice. 
D) nether rice nor bananas.

Quizplus · Accepted Answer

Indonesia has a lower opportunity cost of producing rice compared to India, which means they have comparative advantage in rice production. However, the table does not provide enough information to determine if Indonesia has a comparative advantage in banana production. Therefore, the answer is B- rice but not bananas.

Table 3-3 Assume That Indonesia and India Can Switch Between Producing Rice