Say that Alland can produce 32 units of food per person per year or 16 units of clothing per person per year, but Georgeland can produce 16 units of food per year or 8 units of clothing. Which of the following is true?

Question

Quizplus · Accepted Answer

Georgeland can produce more clothing per person than Alland, even though Alland can produce more food per person. This means that Georgeland has a comparative advantage in producing clothing. However, Georgeland cannot produce more food or clothing per person than Alland, so it does not have an absolute advantage in producing either good.

Say That Alland Can Produce 32 Units of Food Per