JAMB Economics 1981 Question 15

Summary of production conditions in countries I and II
— Amount of labour days — Cocoa (tons) — Cloth (metres)
Country I — 200 — 600 — 900
Country II — 200 — 300 — 800
From the above table, we can correctly say in respect of international trade that

1. A.country I has absolute disadvantage in the production of both cocoa and cloth
2. B.country I has absolute advantage in the production of both cocoa and cloth
3. C.country II has absolute advantage in the production of both cocoa and cloth
4. D.country II has a comparative advantage in the production of cocoa
5. E.country II should leave the production of both cocoa and cloth to country I.