AP Macroeconomics: Comparative Advantage Instructions: Look at the table below. Complete the questions below based upon the relationship between the two countries and the Production Possibilities. Submit your answers in a document. The assignment is worth 10 points, 4 points for question 1 and 3 points for questions 2 and 3. Below are two production possibilities tables for the countries of Producta and Advanta. Answer the questions that refer to the tables. Producta Production Possibilities: A B C D E Automobiles 80 60 40 20 0 Speedboats 0 20 40 60 80 Advanta Production Possibilities: A B C D E Automobiles 40 30 20 10 0 Speedboats 0 20 40 60 80 Questions: If Producta and Advanta decide to begin trading, which nation should export each product? Why? Producta should trade automobiles and Advanta should export speed boats. Producta has the absolute as well as comparative advantage in dealing automobiles. Neither has the absolute advantage in dealing speedboats. They are synonymous in this way. However, since Producta can more easily produce automobiles, then Advanta would have the upper hand in dealing speedboats as it would take the production toll off of Producta. For these reasons, Producta should trade automobiles while