Refer to the information provided in Table 18.5 below to answer the questions that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 18.5
-Refer to Table 18.5. ________ has a comparative advantage in tea and ________ has an absolute advantage in tea.

Question

Refer to the information provided in Table 18.5 below to answer the questions that follow. Cashews are measured in bushels and tea is measured in pounds (lbs.)
Table 18.5 
-Refer to Table 18.5. ________ has a comparative advantage in tea and ________ has an absolute advantage in tea.

Quizplus · Accepted Answer

Vietnam has a comparative advantage in tea if it can produce tea at a lower opportunity cost than India. Neither country has an absolute advantage if neither can produce more tea with the same resources compared to the other.

Refer to the Information Provided in Table 18