Assume Country A and Country B each have the same amount of resources with which to produce wheat and corn and they produce no other goods.The values in Table 17.2 represent the maximum amount of each good that can be produced.
Table 17.1 - Full-employment output of goods
-Based on the information in Table 17.2,it is clear that:

Question

Assume Country A and Country B each have the same amount of resources with which to produce wheat and corn and they produce no other goods.The values in Table 17.2 represent the maximum amount of each good that can be produced.
Table 17.1 - Full-employment output of goods 
-Based on the information in Table 17.2,it is clear that:

Quizplus · Accepted Answer

Country B has an absolute advantage in both goods if it can produce more of both goods with the same amount of resources compared to Country A. Comparative advantage, on the other hand, is about which country can produce a good at a lower opportunity cost. Without specific numbers from Table 17.2, we can't directly assess comparative advantages or whether Country A has an absolute advantage in corn. However, the statement about Country B having an absolute advantage in both goods can be true if it produces more of both goods than Country A with the same resources.

Assume Country a and Country B Each Have the Same