The US Can Produce Pizza for $7

question 25

Multiple Choice

The U.S. can produce pizza for $7.50 each and barrels of beer for $37.50 each, and Germany can produce pizza for €5 each and barrels of beer for €15 each (€ is the symbol for the euro, the currency Germany uses) . If the exchange rate is 1.50 $/€ then

• A)the U.S. has a comparative advantage in the production of beer.
• B)neither country has a comparative advantage in the production of beer.
• C)the U.S. has a comparative advantage in the production of pizza.
• D)the U.S. has a comparative advantage in the production of beer and pizza.

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Definitions:

Coronary Heart Disease

A condition characterized by reduced blood flow to the heart muscle due to the build-up of plaque in the coronary arteries, leading to heart attacks and chest pain.

Smokers

Individuals who habitually smoke tobacco, typically in the form of cigarettes, cigars, or pipes.

Age-Adjusted Death Rates

A statistical measure that allows comparison of mortality rates among different populations by removing the effects of age differences.

Attributable Risk

The difference in the rate of a condition between an exposed population and an unexposed population, which can be attributed to the exposure.