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Karl Can Produce Either 10 Tons of Oranges or 5

Question 32

Multiple Choice

Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following is true in this case?


A) Adam has an absolute advantage in oranges.
B) Karl has a comparative advantage in oranges.
C) Karl has an absolute advantage in apples.
D) Karl has a comparative advantage in apples.
E) Adam has a comparative advantage in oranges.

Correct Answer:

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