2. Introductory Economic Models

2. Introductory Economic Models / PPF - Comparative Advantage and Absolute Advantage / Problem 6

Problem 6

If a country can produce 100 units of good A or 200 units of good B, and another country can produce 150 units of good A or 150 units of good B, which country has the absolute advantage in producing good A?

The first country

Neither has an advantage.

The second country

Both have the same advantage.