Question

If Texia specializes in food, it can produce 1,000 units of food and 0 units of clothing this year. If it specializes in clothing, it can produce 500 units of clothing and 0 units of food. This year Urbania can produce either 500 units of food and 0 units of clothing or 200 units of clothing and 0 units of food. (assume linear production possibility frontiers) _______has the absolute advantage in the production of clothing and ________has the absolute advantage in the production of food. Texia; Texia Texia; Urbania Urbania; Texia Urbania; Urbania

Answer 1

Answer:

Texia; Texia

Explanation:

A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries

Texia can produce 1000  units of food while Urbania can produce 500  units of food . Texia produces more food

Texia can produce 500 units of clothing while Urbania can produce 200 units of clothing. Texia produces more clothing

Texia has an absolute advantage in both activities