If, in a Two-Commodity, Two-Country Classical World, Sweden Can Make

Multiple Choice

If, in a two-commodity, two-country Classical world, Sweden can make a unit of furniture with 10 days of labor and a unit of steel with 15 days labor, while Germany can make a unit of furniture with 12 days of labor and a unit of steel with 12 days labor, then

A) Sweden has an absolute advantage in steel and Germany has an absolute advantage in Furniture.
B) Sweden has a comparative advantage in steel and Germany has a comparative Advantage in furniture.
C) the pretrade price ratios indicate that Germany will export steel if trade takes place.
D) the pretrade price ratio in Sweden is 1 furniture:1.5 steel.