Suppose the World Consists of Two Countries: Germany and Spain

question 31

Multiple Choice

Suppose the world consists of two countries: Germany and Spain. Further, suppose there are only two goods, food and clothing. Which of the following statements is true?

• A) If Germany has an absolute advantage in the production of food, then Spain must have an absolute advantage in the production of clothing.
• B) None of these answers.
• C) If Germany has a comparative advantage in the production of food, Spain might also have a comparative advantage in the production of food.
• D) If Germany has a comparative advantage in the production of food, it must also have a comparative advantage in the production of clothing.
• E) If Germany has a comparative advantage in the production of food, then Spain must have a comparative advantage in the production of clothing.

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Definitions:

Building's Design

The planning, layout, and construction of structures, considering factors such as aesthetics, functionality, and compliance with regulations, to achieve specific purposes and needs.

Company's Cafeteria

A dedicated area within a company's premises where employees can buy or receive food, often seen as part of the organization's welfare facilities.

Organizational Countercultures

Subcultures within an organization that hold values, beliefs, or behaviors that are distinctly different from or opposed to the dominant organizational culture.

Ethical Conduct

Behavior that is in line with accepted principles of right and wrong, guiding professional and personal actions.