For each pound of salami that Hungary produces, it gives up the opportunity to make 10 bottles of beer. Slovakia can produce 1 pound of salami for every 8 bottles of beer it produces
Which of the following is true about the comparative advantage between the two countries?
A) Slovakia has the comparative advantage in beer.
B) Hungary has the comparative advantage in beer.
C) Hungary has the comparative advantage in salami.
D) Slovakia has the comparative advantage in salami and beer.
B
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A cost that arises from the production or consumption that falls on someone other than the producer or consumer is called
A) a negative benefit. B) a public choice impact. C) a positive externality. D) a negative externality. E) a private good.
Refer to Table 29-1. Use the information in the table to prepare a balance of payments account and find the value of the statistical discrepancy. Assume that the balance on the capital account is zero
What will be an ideal response?