With a Particular Amount of Labor and Other Resources, Japan

Multiple Choice

With a particular amount of labor and other resources, Japan can produce 60 sedans or 30 SUVs. With the same amount of labor and resources, Germany can produce 40 sedans or 40 SUVs. Which of the following statements is true of the scenario?

A) Japan has a comparative advantage and an absolute advantage over Germany in producing SUVs.
B) Germany has an absolute advantage in producing sedans and a comparative advantage in producing SUVs over Japan.
C) Japan has an absolute advantage in producing sedans and a comparative advantage in producing SUVs over Japan.
D) Germany has a comparative advantage and an absolute advantage over Japan in producing SUVs.