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Use the table to answer the 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

soybeans
soybeans

wheat and soybeans
wheat and soybeans

wheat
wheat

neither product

1 answer

To determine whether Bolivia has an absolute advantage in production, we compare the production quantities of each product.

  • Soybeans:

    • Argentina: 100 million tons
    • Bolivia: 120 million tons

    Since Bolivia produces 120 million tons of soybeans, which is more than Argentina's 100 million tons, Bolivia has an absolute advantage in soybeans.

  • Wheat:

    • Argentina: 80 million tons
    • Bolivia: 100 million tons

    Since Bolivia produces 100 million tons of wheat, which is more than Argentina's 80 million tons, Bolivia also has an absolute advantage in wheat.

Based on this comparison, Bolivia has an absolute advantage in both soybeans and wheat.

Therefore, the correct response is:

wheat and soybeans