Reference: Ref 2-8 (Table: Production in the United States and Germany)

question 116

Multiple Choice

Reference: Ref 2-8 (Table: Production in the United States and Germany) According to the table, which of the following statements is true?

• A) The United States has a comparative advantage in clocks.
• B) Germany has an absolute advantage in clocks and sofas.
• C) The United States has a comparative advantage in sofas.
• D) The United States has a comparative advantage in clocks and sofas.

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Definitions:

Peripheral Countries

Nations that are less economically developed with minimal influence in the global economic system, often exploited by more dominant, economically powerful countries.

Taiwan

An island in East Asia, known for its dynamic economy and vibrant democracy, despite complex international status and relations with China.

South Korea

A country located in East Asia, known for its advanced technology and vibrant culture, officially called the Republic of Korea.

Postcolonial Countries

Nations that gained independence after being colonized, continuing to face challenges related to identity, development, and legacy issues.