Question

The chart shows how many carrots or apples two countries could each grow if they devoted all of their farming resources to one product. Considering the comparative advantage each country has in this situation, which outcome would be most likely?
A. Country A would have a trade surplus; country B would have a trade deficit.
B. Country A would have a trade deficit; country B would have a trade surplus.
C. Country A would focus on growing apples; country B would focus on growing carrots.
D. Country A would focus on growing carrots; country B would focus on growing apples.

Answer 1

Answer:

D. Country A would focus on growing carrots; country B would focus on growing apples.

Explanation:

Country A would focus on growing carrots because the opportunity cost of producing carrots in terms of apples is 10,000 a day, which is the same for country B, but with a production of only hafl the amount of carrots.

Country B would focus on apples because doing so would only cost 20,000 carrots a day, while if Country A did so, it would cost it 40,000 carrots a day.

Answer 2

Answer:

D. Country A would focus on growing carrots; country B would focus on growing apples

Explanation:

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