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Vintland and Moonited Republic Produce Wine and Cheese

Question 16

Multiple Choice

Vintland and Moonited Republic produce wine and cheese. The opportunity cost for the production of a bottle of wine in Vintland is 2 pounds of cheese, and in the Moonited Republic is 2.5 pounds of cheese. Based on this information, it can be concluded that:


A) trade between the two countries based on comparative advantage is not possible.
B) Vintland has a comparative advantage in the production of wine.
C) Vintland has a comparative advantage in the production of cheese and Moonited has a comparative advantage in the production of wine.
D) Vintland has an absolute disadvantage in the production of both goods.

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