The Accompanying Table Shows the Output (Either Machines or Wine)

question 213

Multiple Choice

$$\begin{array} { | l | c | c | } \hline & \text { Machines } & \text { Wine } \\\hline \text { France } & 3 & 1 \\\hline \text { Germany } & 1 & 1 \\\hline\end{array}$$ The accompanying table shows the output (either machines or wine) that each unit of input in France and Germany can produce. We see that

• A) France has an absolute advantage over Germany in producing either output.
• B) Germany has an absolute disadvantage in producing wine.
• C) Germany has no absolute advantage over France in producing either output.
• D) France will see no economic basis for trading with Germany.

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Definitions:

Express Contract

A contract where the terms of the agreement are explicitly stated in words, whether oral or written.

Implied in Fact Contract

An agreement formed by actions and conduct of the parties involved, rather than written or spoken words.

Void Contract

An agreement that is not legally binding and is unenforceable by law, typically because it lacks one or more essential elements of a valid contract.

Incompetent

Lacking the necessary skills, abilities, or legal qualifications to perform a task or to stand trial.