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The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can

 

The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can make 1,500 computers or 3,000 units of food a day, and Philippines can make 300 computers or 1,800 units of food in a day. Australia Philippines Amount Produced of Each Good per Day per Country Computers 1,500 300 Food 3,000 1,800 1. Illustrate the production possibilities (PPC) for both countries 2. Which country has an absolute advantage in the production of both goods? Why? 3. Which country has a comparative advantage in computers production? Explain. 4. Which country should specialize in computers production? Explain. 5. Which country has a comparative advantage in food production? Explain. 6. Which country should specialize in food production? Explain.

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