The Figure Given Below Represents the PPC in Two Nations

question 66

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Refer to Figure 2.4 and identify the correct statement.

• A)Germany has comparative advantage in the production of cars.
• B)Korea has comparative advantage in the production of cars.
• C)Germany has comparative advantage in the production of food.
• D)Korea has a lower opportunity cost for making cars.
• E)Germany has a lower opportunity cost for making food.

---

Definitions:

Development Costs

These are the expenses associated with the research and development of new products or services, often considered in the valuation of a company.

Removable Ore

Ore that can be extracted and processed from a mine site for a profit.

Original Condition

The state of an asset or item as it was initially acquired or received, before any modifications, repairs, or restoration.

Impairment Loss

The amount by which the carrying amount of an asset exceeds its recoverable amount, leading to a decrease in the asset's value on the financial statements.