The First Two Columns Give the Maximum Daily Amounts of Beer

question 4

Multiple Choice

The first two columns give the maximum daily amounts of beer and whiskey that Southern Ireland and Northern Ireland can produce when they completely specialize in one or another product.The last two columns give each country's consumption without trade. $$\begin{array} { l c c c c c c } & \begin{array} { c } \text { Maxirnumn } \\\text { beer } \\\text { production }\end{array} & \begin{array} { c } \text { Maxirnum } \\\text { whiskey } \\\text { production }\end{array} & \begin{array} { c } \text { Beer consumption } \\\text { without trade }\end{array} & \begin{array} { c } \text { Beer consurnption } \\\text { without trade }\end{array} \\\begin{array} { l } \text { Northem } \\\text { Irelard } \\\text { Southem }\end{array} & 500 \mathrm { kegs } & 1500 \mathrm { kegs } & 300 \mathrm { kegs } & 600 \text { bottles } \\\text { Ireland } & 1200 \mathrm { kegs } & \mathbf { 8 0 0 } \mathrm { kegs } & 600 \mathrm { kegs } & 400 \text { bottles }\end{array}$$ In which product does Northern Ireland have a comparative advantage in producing?

• A)Beer
• B)Whiskey
• C)Neither
• D)Both

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