Multiple Choice
Consider the following information on labor hours needed per unit of output:
Ignoring nonlabor inputs,which of the following statements is correct?
A) France has an absolute advantage in the production of both goods.
B) France has a comparative advantage in the production of both goods.
C) the opportunity cost of a computer in Italy is 4 units of wine.
D) the opportunity cost of a unit of wine in France is 2 computers.
E) France produces more computers that Italy produces wine.
Correct Answer:
Verified
Correct Answer:
Verified
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