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Question

a. australia has a comparative advantage in the production of food while korea has a comparative advantage in the production of electronics. b. korea has a comparative advantage in the production of food while australia has a comparative advantage in the production of electronics. c. australia has a comparative advantage in the production of both food and electronics. d. korea has a comparative advantage in the production of both food and electronics. e. neither country has a comparative advantage.

Answer

Australia has a comparative advantage in the production of food while Korea has a comparative advantage in the production of electronics.

  • Identify the given information about comparative advantage between Australia and Korea. A: Australia has a comparative advantage in the production of food while Korea has a comparative advantage in the production of electronics.