The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers.Australia can make 1, 000 computers or 2, 000 units of food in a day, and the Philippines can make 200 computers or 1, 200 units of food in a day. Table 34.2 According to Table 34.2, Australia has an:

Question

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers.Australia can make 1, 000 computers or 2, 000 units of food in a day, and the Philippines can make 200 computers or 1, 200 units of food in a day. Table 34.2  According to Table 34.2, Australia has an:

Quizplus · Accepted Answer

Australia has an absolute advantage in both food and computer production as it can produce more units of both goods with the same amount of resources compared to the Philippines. Specifically, Australia can produce 2 units of food for every 1 computer, while the Philippines can only produce 6 units of food for every 1 computer. This means that Australia can produce food and computers at a lower opportunity cost than the Philippines, and therefore has an absolute advantage.

The Data in the Table Below Assumes That with the Same