Multiple Choice
If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then Germany has
A) a comparative advantage in the production of beer.
B) an absolute advantage in the production of beer.
C) a comparative advantage in the production of pizza.
D) a comparative advantage in the production of beer and pizza.
Correct Answer:

Verified
Correct Answer:
Verified
Q42: The manager of a U.S. office building
Q43: If a bottle of fine French wine
Q44: An automobile company has two factories, one
Q45: Your U.S.-based company is selling parts to
Q46: A U.S.-based multinational has two subsidiaries, one
Q48: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8230/.jpg" alt=" -The above figure
Q49: The price used to sell goods or
Q50: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8230/.jpg" alt=" -The above figure
Q51: A ban on imports, a tariff, or
Q52: International price discrimination for a good is