Use the Production Possibilities Data Below for Austria and Italy

question 108

Multiple Choice

Use the production possibilities data below for Austria and Italy to answer the following question(s) . Table 2-1
Refer to Table 2-1. Which of the following is true?

• A) Austria has the comparative advantage in both goods.
• B) Austria has the comparative advantage in food.
• C) Italy has the comparative advantage in food.
• D) It would be impossible for Austria and Italy to gain from trade.

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