171819

Two countries, Foodland and Drinkland produce food and drinks. In Foodland one resource unit produces 20 tons of food and one resource unit produces 10 tons of drinks. In Drinkdand one resource unit produces 12 tons of food and one resource unit produces 24 tons of drinks Food 20 12 Drinks 10 Foodland Drinkland 24 17 Based on the above scenario, which of the following statements is true? A) Foodland has an absolute advantage in producing food B) Foodland has an absolute advantage in producing drinks C) Drinkland has an absolute advantage in producing both food and drinks D) Drinkland has an absolute advantage in producing food E) Foodand has an absolute advantage in producing both foodand drinks 2 18. Which of the following statements is true of the above scenario? I A) Foodland has a comparative advantage in producing drinks B) Drinkland cannot trade with Foodland because trade is too expensive C) Drinkland has an absolute advantage in producing drinks D) Foodland should stop producing food and just produce drinks E) Drinkland has an absolute advantage in producing both food and drinks 3 E) ikland has a 19 A third country, Funland, also produces food and drinks. In Funland, one resource unit produces 8 tons of food and 6 tons of drinks. Which of the following is true about Funland Foodland, and Drinkland2 A) Funland has an absolute advantage in producing both food and drinks B) Fimland has a comparative advantage in producing food than Drinkdand C) Funland has an absolute advantage in producing food D) Funland has an absolute advantage in producing drinks E) It is impossible for Funland to trade with Drinkland and Foodland because it does not have any absolute advantage in both food and drinks /