2.3 The following table gives recent figures for yield per hectare (in kg/ha) in India and China: Wheat Paddy India 1,000 3,500 China 4,000 6,600

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 wheat production? Paddy?

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

c. Which country has a comparative advantage in wheat production? In paddy production?

d. Which country would divert more of its land to the production of wheat? Why?