Scenario: Foodland and Drinkland
Two countries, Foodland and Drinkland, produce food and drinks. In Foodland, one resource unit produces 20 tons of food and one resource unit produces 10 tons of drinks. In Drinkland, one resource unit produces 12 tons of food and one resource unit produces 24 tons of drinks.
Food Drinks
Foodland 20 10
Drinkland 12 24
-Based on the above scenario,which of the following statements is true?

Question

Quizplus · Accepted Answer

Foodland has an absolute advantage in producing food because one resource unit produces 20 tons of food, which is more than the 12 tons of food produced by one resource unit in Drinkland. Additionally, there is no information indicating that Foodland has an absolute advantage in producing drinks or that Drinkland has an absolute advantage in producing both food and drinks. Therefore, option A is the correct answer.