Although It Lacks Sources of Timber and Oil, Chablis Has

question 31

Multiple Choice

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries. Which statement about Chablis is true?

• A) It has a comparative advantage in wine production.
• B) It has a comparative advantage in timber and oil production.
• C) It has an absolute advantage in the production of wine.
• D) It has an absolute advantage in timber and oil production.
• E) It has no comparative or absolute advantages.

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Definitions:

Renewable Energy

Energy from sources that are naturally replenishing but flow-limited, such as sunlight, wind, water currents, geothermal heat, and bioenergy.

Stored

Kept or accumulated for future use, referring to anything that can be retained or conserved for a period of time.

Compete

To strive for a goal, such as a prize or higher status, against others by overcoming challenges and obstacles.