If you have two countries, two commodities etc....
If a country has absolute advantage in both products which one do you specialise in?
Obviously the one where the gap between the maximum output of Country A and Country B is the greatest! If you draw it with two straight lines it's where there's the greatest distance.
That's what the IB Economics book says - so it must be right...mustn't it...?
MCQ Walkthrough 9708/32 (India) (Q21 - Q30)
8 months ago