If the United States' Production Possibility Frontier Was Flatter to the Widget

question 10

Multiple Choice

If the United States' production possibility frontier was flatter to the widget axis,whereas Germany's was flatter to the butter axis,we know that

• A) the United States has no comparative advantage
• B) Germany has a comparative advantage in butter.
• C) the U.S. has a comparative advantage in butter.
• D) Germany has comparative advantages in both products.
• E) the U.S. has a comparative disadvantage in widgets.

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