In Germany, one worker can produce either one cuckoo clock or one beer mug. In Taiwan, one worker can produce either two cuckoo clocks or three beer mugs. Who has the comparative advantage in each good?
A. Taiwan in both goods
B. Taiwan in clocks and Germany in mugs
C. Germany in clocks and Taiwan in mugs
D. Germany in both goods
C. Germany in clocks and Taiwan in mugs
You might also like to view...
Which of the following is true if the total variable cost curve is rising?
a. Average fixed cost is increasing. b. Marginal cost is decreasing. c. Marginal cost is increasing. d. Average fixed cost is constant.
Specialization leads to
a. increases in production because labor uses more advanced technology b. decreases in production because each resource becomes less productive c. increases in production because more resources are being used d. increases in production because each resource becomes more productive e. increases in production because capital is more productive than labor