If the United States could produce 4 tons of potatoes or 2 tons of wheat per worker per year, while Ireland could produce 2 tons of potatoes or 3 tons of wheat per worker per year, the country with the comparative advantage in producing potatoes is ____ and the country with the absolute advantage in producing potatoes is ____.

Question

Quizplus · Accepted Answer

The United States has the comparative advantage in producing potatoes because it sacrifices less wheat to produce potatoes compared to Ireland (1 ton of wheat per 2 tons of potatoes in the US vs. 1.5 tons of wheat per ton of potatoes in Ireland). It also has the absolute advantage because it can produce more potatoes per worker per year (4 tons) than Ireland (2 tons).

If the United States Could Produce 4 Tons of Potatoes