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If 50 Units of Resources Can Produce Either 1 Ton

Question 118

Multiple Choice

If 50 units of resources can produce either 1 ton of sugar beets or 100 lb.of ham in Germany,while 90 units of resources can produce either 2 tons of sugar beets or 300 lb.of ham in Poland,


A) Poland has a comparative advantage in producing both goods
B) Germany has a comparative advantage in producing sugar beets
C) neither country has an absolute advantage in producing sugar beets,but Poland has an absolute advantage in producing ham
D) Germany can produce more ham than Poland can
E) mutually beneficial international trade is not possible

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