Business, 01.02.2021 21:20 coolkitty35
Assume Italy and Mauritania can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries. Each farmer in Italy can produce 10 t of grain or 5 t of dates in a season. Each farmer in Mauritania can also produce 10 t of grain or 25 t of dates. Please answer the four questions.
1. Which country has the absolute advantage in producing dates?
a. Tunisia
b. Sweden
c. Neither
2. Which country has the absolute advantage in producing grain?
a. Tunisia
b. Sweden
c. Neither
3. Which country has the comparative advantage in producing dates
a. Tunisia
b. Sweden
c. Neither
4. Which country has the comparative advantage in producing grain?
a. Tunisia
b. Sweden
c. Neither
Answers: 1
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