The table gives the factor inputs needed to make wheat and cars in countries X and Y. units of factor inputs to produce one tonne of wheat / units of factor inputs to produce one car: country X: 4, 2; country Y: 8, 6. What is it that allows both countries to gain from trade?
- ACountry X has an absolute advantage in wheat and car production.
- BCountry Y has an absolute advantage in wheat and car production.
- CCountry Y has a comparative advantage in wheat production.
- DOpportunity cost of wheat and car production is the same between countries.