Question

Saudi Arabia can produce 100 barrels of oil using 100 worker hours or 25 bushels of...

Saudi Arabia can produce 100 barrels of oil using 100 worker hours or 25 bushels of corn using 100 worker hours.

United States can produce 50 barrels of oil using 100 worker hours or 100 bushels of corn using 100 worker hours.

Which country has the absolute advantage in oil?

Group of answer choices

Saudi Arabia

United States

Neither country has an absolute advantage.

There is not enough data to calculate.

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Answer #1
Oil Production using 100 worker hours (barrels) Corn Production using 100 worker hours (bushels)
Saudi Arabia 100 25
United States 50 100

If each quantity is divided by 100 workers to determine production in hours based on 1 worker.

Oil Production (barrels) Corn Production (bushels)
Saudi Arabia 2 1
United States 1 4

Saudi Arabia has an absolute advantage in the production of oil because it only takes an hour to produce a barrel of oil compared to two hours in the United States. The United States has an absolute advantage in the production of corn.

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