Given the Following Ricardo-Type Table Showing the Amount of Labor

question 12

Multiple Choice

Given the following Ricardo-type table showing the amount of labor input required to produce one unit of output of each of the two goods in each of the two countries:
$\begin{array}{lcc} &\underline{\text { Shirts}} &\underline{\text { Machines }}\\\text { France } & 3 \text { days } & 5 \text { days } \\\text { Germany } & 2 \text { days } & 4 \text { days }\end{array}$
France has an absolute advantage in __________ and a comparative advantage in __________.

• A) both goods; machines
• B) both goods; shirts
• C) neither good; machines
• D) neither good; shirts

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Definitions:

Pancreas

A gland situated behind the stomach that has both exocrine functions (digestive enzyme production) and endocrine functions (insulin and glucagon production).

Erythropoietin

A hormone produced primarily by the kidneys that regulates red blood cell production in response to oxygen levels in the body.

Mineralcorticoids

A class of corticosteroids, originating from the adrenal cortex, that regulate electrolyte and water balance.

Parathyroid Hormone

A hormone produced by the parathyroid glands responsible for regulating calcium levels in the blood.