Question

If Country A uses all of the resources at its disposal, it can produce a maximum of 500 watches or 200 televisions. Within the same time frame, if Country B uses all of its resources, it can produce a maximum of 200 watches or 100 televisions. Which of the following must be true? (1 point)

Country B has the absolute advantage and the comparative advantage in watch production.
Country A has the absolute advantage in watch production, but Country B has the comparative advantage in watch production.
Country A has the absolute advantage and the comparative advantage in watch production.
Country B has the absolute advantage in watch production, but Country A has the comparative advantage in watch production.

Answer 1

[AI-generated answer — Bot GPT 3.5]

Country B has the absolute advantage in watch production, but Country A has the comparative advantage in watch production.