Refer to the table above. Based on the given information, we see that:
The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce:
A. France has an absolute advantage over Germany in producing either output
B. Germany has an absolute disadvantage in producing wine
C. Germany has no absolute advantage over France in producing either output
D. France will see no economic basis for trading with Germany
C. Germany has no absolute advantage over France in producing either output
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If two events are positively correlated but NOT perfectly correlated, then
A) diversification is not necessary since there is no risk. B) diversification eliminates all risk. C) diversification does not reduce risk at all. D) diversification can reduce risk.
Contractionary monetary policy causes:
a. Aggregate demand to rise, prices to rise, and real GDP to fall. b. Aggregate demand to rise, prices to rise, and real GDP to rise. c. Aggregate demand to fall, prices to fall, and real GDP to fall. d. Aggregate supply to rise, prices to rise, and real GDP to rise. e. Aggregate supply to rise, prices to rise, and real GDP to fall.