Assume That Germany and China Can Produce Beer and Cloth

question 85

Multiple Choice

Assume that Germany and China can produce beer and cloth.If the
MPLc/MPLb for Germany is 2/5 and MPLc/MPLb for China is 1, then
Germany should:

• A)specialize in producing beer and export beer.
• B)specialize in producing cloth and export cloth.
• C)not specialize, because Germany will not benefit from it.
• D)specialize in producing cloth and import cloth.

---

Definitions:

AgNO3

Silver nitrate, an inorganic compound with antiseptic properties, used in medical applications and analytical chemistry.

Increased Speed

A situation where the velocity or pace at which an object or process operates is raised.

Explosion

A rapid increase in volume and release of energy in an extreme manner, typically with the generation of high temperatures and the release of gases.

Reactants Mixing

The process of combining substances that react with each other to form products in a chemical reaction.