Table 1. Unit Labor Requirements VietnamIndonesiaCoffee7040Tea50125 Vietnam has an absolute advantage in a. Coffee only. b. Tea only. c. Neither coffee nor tea. d. Both coffee and tea.

A country or an individual is set to have an absolute advantage if it can produce more of a good…

Answered: Table 1. Unit Labor Requirements…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 3SCQ: Could a nation be producing in a way that is allocatively efficient, but productively inefficient?

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Table 1. Unit Labor Requirements

Vietnam	Indonesia
Coffee	70	40
Tea	50	125

Vietnam has an absolute advantage in

Coffee only.

Tea only.

Neither coffee nor tea.

Both coffee and tea.

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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