The Hypothetical Nations Wat and Xat Have the Production Possibilities

question 282

Multiple Choice

$$\begin{array}{l}{ ~~~~~~~~~~~~~~~~~~~~~\text { Wat's Production Possibilities } }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Rice } & 750 & 600 & 450 & 300 & 150 & 0 \\\hline \text { Corn } & 0 & 50 & 100 & 150 & 200 & 250 \\\hline\end{array}\\\\{ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\text { Xat's Production Possibilities } }\\\begin{array} { | l | c | c | c | c | c | c | } \hline \text { Product } & A & B & C & D & E & F \\\hline \text { Rice } & 2,500 & 2,000 & 1,500 & 1,000 & 500 & 0 \\\hline \text { Corn } & 0 & 100 & 200 & 300 & 400 & 500 \\\hline\end{array}\end{array}$$ The hypothetical nations Wat and Xat have the production possibilities for rice and corn given in the accompanying tables. Which of the following statements about the two nations is correct based on
The principle of comparative advantage?

• A) Xat should specialize in the production of corn.
• B) Wat should specialize in the production of rice.
• C) Xat has a comparative advantage in the production of rice.
• D) Xat has a comparative advantage in the production of corn.