QUESTION 22
Scenario 1
The data in the table below assume that with the same quantity of resources, both Australia and the Philippines produce food and
computers. Australia can make 1,000 computers or 2,000 units of food in a day, and the Philippines can make 200 computers or
1,200 units of food in a day.
Amount Produced of Each Good per Day per Country
Australia
Philippines
Computers
1,000
200
Food
or
2,000
or
1,200
According to the table in the scenario above, Australia has an absolute advantage in producing
A. both computers and food.
B. food only.
C. food and an absolute disadvantage in producing computers.
D. computers only.
E. neither computers nor food.