The data in the table below assume that with the same quantity of resources, both Australia and Philippines produce food and computers. Australia can make 1,000 computers or 2,000 units of food a day, and Philippines can make 200 computers or 1,200 units of food in a day. Amount Produced of Each Good per Day per Country Computers 1,000 Food Australia 2,000 1,200 Philippines 200

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.