Suppose Canada could produce 4 tonnes of potatoes or 2 tonnes of wheat per worker per year,while Ireland could produce 3 tonnes of potatoes or 2 tonnes of wheat per worker per year.What country has the comparative advantage in producing wheat and the absolute advantage in producing potatoes?

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce a good or service at a lower opportunity cost than other countries. 
In this case, Ireland can produce 1 tonne of wheat by giving up 1.5 tonnes of potatoes, while Canada can produce 1 tonne of wheat by giving up 2 tonnes of potatoes. Therefore, Ireland has a comparative advantage in wheat production.
Absolute advantage, on the other hand, refers to the ability of a country to produce more of a good or service than another country using the same amount of resources. 
In this case, Canada can produce 4 tonnes of potatoes per worker per year, while Ireland can only produce 3 tonnes of potatoes per worker per year. Therefore, Canada has an absolute advantage in potato production.

Suppose Canada Could Produce 4 Tonnes of Potatoes or 2