1.2.3 The following table gives recent figures for yield per hectare

(in kg/ha) in India and China

a. If we assume that farmers in India and China use the same amount of labor, capital and fertilizer, which state has an absolute advantage in the production of Wheat? Paddy?

b. lf we transfer land out of wheat into Paddy, how many kilograms of wheat do we give up in India per additional kg of paddy produced? In China?

c. Which country has a comparative advantage in production of wheat? Paddy?

d. Which country will divert more of its land to the production of Wheat? Why?

Transcribed Image Text:

Wheat Paddy India 1000 3500 China 4000 6600