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1.Country A and Country B have the same number of resources. Country A can produce 10
apples or 40 bananas; Country B can produce 12 apples or 60 bananas. Which country has
absolute advantage in producing apples (i.e., which country can produce apples more
efficiently?)? Which country has absolute advantage in producing bananas?
2. what are some of the tools that the government can use to intervene with international trade?

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1-Country A and Country B have the same number of resources- Country A.docx

  • 1. 1.Country A and Country B have the same number of resources. Country A can produce 10 apples or 40 bananas; Country B can produce 12 apples or 60 bananas. Which country has absolute advantage in producing apples (i.e., which country can produce apples more efficiently?)? Which country has absolute advantage in producing bananas? 2. what are some of the tools that the government can use to intervene with international trade?