Answered

The chart shows how many carrots or apples two countries could each grow if they devoted all of their farming resources to one product. Considering the comparative advantage each country has in this situation, which outcome would be most likely?

\begin{tabular}{|l|l|l|}
\cline {2-3}
\multicolumn{1}{c|}{} & \begin{tabular}{c}
Number of carrots grown per day
\end{tabular} & \begin{tabular}{c}
Number of apples grown per day
\end{tabular} \\
\hline
Country A & 40,000 & 10,000 \\
\hline
Country B & 20,000 & 10,000 \\
\hline
\end{tabular}

A. Country A would focus on growing apples to trade with Country B.
B. Country A would focus on growing carrots to trade with Country B.
C. Country B would have a greater trade deficit than Country A.
D. Country B would focus on growing carrots to trade with Country A.



Answer :

GinnyAnswer
To determine which outcome is most likely, we need to analyze the comparative advantages of each country based on the given data. Let's break down the information step by step:

### Country A's Production
- Carrots: 40,000 per day
- Apples: 10,000 per day

### Country B's Production
- Carrots: 20,000 per day
- Apples: 10,000 per day

### Comparative Advantage Analysis
Step 1: Calculate the opportunity cost for each country.

#### Opportunity Cost of Carrots in Terms of Apples

- Country A:
- If Country A produces 40,000 carrots in a day, it forgoes producing 10,000 apples.
- Opportunity cost for carrots: [tex]\( \frac{10,000 \text{ apples}}{40,000 \text{ carrots}} = 0.25 \text{ apples per carrot} \)[/tex]

- Country B:
- If Country B produces 20,000 carrots in a day, it forgoes producing 10,000 apples.
- Opportunity cost for carrots: [tex]\( \frac{10,000 \text{ apples}}{20,000 \text{ carrots}} = 0.5 \text{ apples per carrot} \)[/tex]

#### Opportunity Cost of Apples in Terms of Carrots

- Country A:
- If Country A produces 10,000 apples in a day, it forgoes producing 40,000 carrots.
- Opportunity cost for apples: [tex]\( \frac{40,000 \text{ carrots}}{10,000 \text{ apples}} = 4 \text{ carrots per apple} \)[/tex]

- Country B:
- If Country B produces 10,000 apples in a day, it forgoes producing 20,000 carrots.
- Opportunity cost for apples: [tex]\( \frac{20,000 \text{ carrots}}{10,000 \text{ apples}} = 2 \text{ carrots per apple} \)[/tex]

### Step 2: Identify Comparative Advantage

- Comparative advantage for a good goes to the country with the lower opportunity cost in producing that good.
- Country A has a comparative advantage in producing carrots because their opportunity cost (0.25 apples per carrot) is lower than Country B's (0.5 apples per carrot).
- Country B has a comparative advantage in producing apples because their opportunity cost (2 carrots per apple) is lower than Country A's (4 carrots per apple).

### Conclusion
Given the comparative advantage of each country:

- Country A should focus on growing carrots.
- Country B should focus on growing apples.

Therefore, the most likely outcome is:
B. Country A would focus on growing carrots to trade with Country B.