Suppose Spain Is Currently Producing 90 Units of Wine and 10

question 80

Multiple Choice

Suppose Spain is currently producing 90 units of wine and 10 units of cheese,but to produce 10 more units of cheese it must sacrifice 30 units of wine.Further,suppose that Portugal produces 45 units of wine and 45 units of cheese,but to produce 10 more units of cheese it must sacrifice only 10 units of wine.What is the pattern of absolute advantage between Spain and Portugal?

• A)Portugal has an absolute advantage in both wine and cheese production.
• B)Portugal has an absolute advantage in wine production and Spain has an absolute advantage in cheese production.
• C)Spain has an absolute advantage in both wine and cheese production.
• D)neither country has an absolute advantage in the production of either wine or cheese.
• E)more information is needed to conclude anything about absolute advantage in either country.

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Definitions:

Pitch Cone

The imaginary cone that defines the pitch surface of conical gears or screw threads, where the common vertex of the gear teeth or threads would converge.

Cone Angle

The angle formed between the outer surfaces of a cone, measured at its widest part.

Bevel Gears

Gears designed with angled teeth so they can transmit motion between intersecting shafts, typically at a right angle.

Intersecting Shafts

Shafts that cross each other at any angle other than 90 degrees, often requiring special joint or coupling to transmit power.