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Assume That Germany and China Can Produce Beer and Cloth

Question 7

Multiple Choice

Assume that Germany and China can produce beer and cloth.If the
MPLc/MPLb for Germany is 2/5 and MPLc/MPLb for China is 1, then
Germany and China have a comparative advantage in:


A) cloth and beer, respectively.
B) beer and cloth, respectively.
C) beer.
D) cloth.

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