Use the table to answer the question.

Question

Soybeans Wheat
Argentina 100 million tons 80 million tons
Bolivia 120 million tons
100 million tons

For which of the following does Bolivia have the absolute advantage in production?

(1 point)
Responses

wheat and soybeans
wheat and soybeans

neither product
neither product

wheat
wheat

soybeans

Answer 1

To determine for which product Bolivia has an absolute advantage, we compare its production capabilities with those of Argentina.

Soybeans:

• Bolivia produces 120 million tons.
• Argentina produces 100 million tons.

Bolivia has an absolute advantage in soybeans because it produces more (120 million tons) than Argentina (100 million tons).

Wheat:

• Bolivia produces 100 million tons (not specified, but assumed based on the structure of the question).
• Argentina produces 80 million tons.

Bolivia has an absolute advantage in wheat because it produces more (100 million tons) than Argentina (80 million tons).

Thus, Bolivia has an absolute advantage in both wheat and soybeans.

The correct response is: wheat and soybeans