For each watch that Switzerland produces, it gives up the opportunity to make 50 pounds of chocolate. Germany can produce 1 watch for every 100 pounds of chocolate it produces
Which of the following is true about the comparative advantage between the two countries?
A) Switzerland has the comparative advantage in chocolate.
B) Germany has the comparative advantage in watches and chocolate.
C) Germany has the comparative advantage in watches.
D) Switzerland has the comparative advantage in watches.
D
You might also like to view...
Of the following high-income countries, which has the highest obesity rate?
A) Canada B) Japan C) the United Kingdom D) the United States
If the actual price level is lower than the expected price level reflected in long-term contracts,
a. the actual rate of unemployment will be less than the natural rate of unemployment. b. the actual rate of unemployment will exceed the natural rate of unemployment. c. the natural rate of unemployment will rise. d. the natural rate of unemployment will fall.