Country A can produce 10 yards of textiles or 6 pounds of food per unit of input.Country B can produce 8 yards of textiles or 5 pounds of food per unit of input.
A)Country A is relatively more efficient than Country B in the production of textiles.
B)Country B is relatively more efficient than Country A in the production of food.
C)Country A has an absolute advantage over Country B in the production of food and textiles.
D)all of the options

Question

Quizplus · Accepted Answer

Country A has an absolute advantage in both textiles and food because it can produce more of each per unit of input than Country B. This also means Country A is relatively more efficient in producing textiles, and despite the absolute advantage, the comparison of efficiency in food production isn't directly addressed by the options, but A's efficiency in textiles implies B's relative efficiency in food due to opportunity costs.

Country a Can Produce 10 Yards of Textiles or 6