The Data in the Table Below Assumes That with the Same

question 12

Multiple Choice

The data in the table below assumes that with the same quantity of resources, both Australia and Philippines produces food and computers.Australia can make 1, 000 computers or 2, 000 units of food in a day, and the Philippines can make 200 computers or 1, 200 units of food in a day. Table 20.2 According to Table 20.2, Philippines has an:

• A)absolute advantage in the production of both food and computers.
• B)absolute advantage in the production of only food.
• C)absolute advantage in the production of only computers.
• D)absolute disadvantage in the production of only food.
• E)absolute disadvantage in the production of both food and computers.

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Definitions:

Central America-Dominican Republic Free Trade Agreement (CAFTA-DR)

A free trade agreement aimed at creating economic growth and facilitating trade between the United States, Central America, and the Dominican Republic.

U.S. Sugar Producers

Companies or entities involved in the cultivation, processing, and selling of sugar within the United States.

Relaxed Trade Rules

Eased regulatory provisions governing international trade, intended to simplify the process of buying and selling goods across borders.

Euro

The official currency used by the majority of the member countries of the European Union.