Answer:
a. India has a comparative advantage in the production of rice.
Explanation:
A comparative advantage is when a country is able to produce a product with a lower opportunity cost.
An absolute advantage is when a country is able to produce more products with the same resources than another country.
For India to produce 1 pound of rice, it has an opportunity cost of 0.33 shirts.
For China to produce 1 pound of rice, it has an opportunity cost of 0.5 shirts.
This indicates that India has a comparative advantage in producing rice as it has a lower opportunity cost.
According to this, the answer is that the statement that is true is: India has a comparative advantage in the production of rice.
