Multiple Choice
A bottle of wine can be produced in France with 2 labor hours, and in the United States with 4 labor hours. A pound of beef can be produced in France with 1 labor hour, and in the United States with ½ labor hours. Which of the following is true in this context?
A) France has a comparative advantage in the production of beef.
B) France has an absolute advantage in the production of beef.
C) The United States has an absolute, but not a comparative advantage in the production of beef.
D) The United States has both comparative and absolute advantage in the production of beef.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The table given below shows the
Q2: The table given below shows the
Q3: The table given below shows the
Q5: The opportunity cost of producing a good
Q6: Briefly discuss the primary features of the
Q7: The table given below shows the
Q8: With the help of a suitable diagram,
Q9: The table given below shows the
Q10: Explain how a mutually beneficial trade is
Q11: The theory of comparative advantage was proposed