The table below shows the quantities of rice and wheat that two countries can produce in a year if they specialize in the production of each good.

-Refer to the table above.Which of the following is true in this case?

Question

The table below shows the quantities of rice and wheat that two countries can produce in a year if they specialize in the production of each good.
 
-Refer to the table above.Which of the following is true in this case?

Quizplus · Accepted Answer

According to the table, Country X has a comparative advantage in producing wheat (it can produce 4 units of wheat for every 1 unit of rice), while Country Y has a comparative advantage in producing rice (it can produce 2 units of rice for every 1 unit of wheat). Therefore, Country X should specialize in producing wheat and Country Y should specialize in producing rice to maximize their combined output.

The Table Below Shows the Quantities of Rice and Wheat