Karl Can Produce Either 10 Tons of Oranges or 5

question 6

Multiple Choice

Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following is true in this case?

• A)Adam has an absolute advantage in oranges.
• B)Karl has a comparative advantage in oranges.
• C)Karl has an absolute advantage in apples.
• D)Karl has a comparative advantage in apples.
• E)Adam has a comparative advantage in oranges.

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Definitions:

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