Suppose Aharoni and Kalinga Are the Only Two Countries in the World

question 131

Multiple Choice

Suppose Aharoni and Kalinga are the only two countries in the world and they produce computers and shoes.Aharoni has 100 workers,and Kalinga has 200 workers.The table below shows the per-day production possibilities for each country.Aharoni has:
Table 19.1:
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$$\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Computers } \\\text { (units) }\end{array} & \begin{array} { l } \text { Shoes } \\\text { (pairs) }\end{array} \\\hline \text { Aharoni } & 600 & 300 \\\hline \text { Kalinga } & 200 & 400 \\\hline\end{array}$$

• A)an absolute advantage in computers only.
• B)an absolute advantage in shoes only.
• C)a comparative advantage in computers.
• D)a comparative advantage in shoes.
• E)neither absolute advantage nor comparative advantage in computers.