If the United States could produce 4 tons of potatoes or 2 tons of wheat per worker per year, while Ireland could produce 3 tons of potatoes or 2 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 has a lower opportunity cost in potato production compared to wheat (1 ton of wheat equals 2 tons of potatoes in the US, whereas in Ireland, 1 ton of wheat equals 1.5 tons of potatoes). The United States also has the absolute advantage in producing potatoes because it can produce more tons of potatoes per worker per year (4 tons) compared to Ireland (3 tons).

If the United States Could Produce 4 Tons of Potatoes