Use the table to answer the question

Question

Soybeans Wheat
Argentina 100 million tons, 80 million tons
Bolivia 120 million tons, 100 million tons
Which of the following products does Argentina have an absolute advantage in production?

(2 points)
Responses

soybeans
soybeans

wheat
wheat

neither soybeans nor wheat
neither soybeans nor wheat

both soybeans and wheat

Answer 1

To determine which products Argentina has an absolute advantage in production, we need to compare the production quantities of soybeans and wheat between Argentina and Bolivia.

• Argentina produces:

  • Soybeans: 100 million tons
  • Wheat: 80 million tons

• Bolivia produces:

  • Soybeans: 120 million tons
  • Wheat: 100 million tons

An absolute advantage exists when one country can produce more of a good than another country with the same resources.

• For soybeans, Bolivia produces 120 million tons, which is more than Argentina's 100 million tons. Therefore, Argentina does not have an absolute advantage in soybeans.

• For wheat, Bolivia produces 100 million tons, which is more than Argentina's 80 million tons. Therefore, Argentina does not have an absolute advantage in wheat either.

Since Argentina does not have an absolute advantage in either soybeans or wheat, the correct response is:

neither soybeans nor wheat.