Scenario: Consider Two Economies, Beta and Zeta

question 103

Multiple Choice

Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.
-Refer to the scenario above.Which of the following statements is true in this case?

• A) Beta has both comparative and absolute advantage in producing oranges.
• B) Zeta has both comparative and absolute advantage in producing oranges.
• C) Beta has a comparative advantage in producing oranges and absolute advantage in producing apples.
• D) Zeta has a comparative advantage in producing apples and absolute advantage in producing oranges.