Table 3-6 -Refer to Table 3-6.Which Country Has an Absolute Advantage in an Absolute

question 186

Multiple Choice

Table 3-6

-Refer to Table 3-6.Which country has an absolute advantage in each product

• A)Denmark has an absolute advantage in bread, and Italy has an absolute advantage in cheese.
• B)Denmark has an absolute advantage in cheese, and Italy has an absolute advantage in bread.
• C)Denmark has an absolute advantage in neither good, and Italy has an absolute advantage in both goods.
• D)Denmark has an absolute advantage in both goods, and Italy has an absolute advantage in neither good.

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Definitions:

Consumer Spending

The total amount of money spent by households in an economy on goods and services, excluding purchases of new housing.

Durable Goods

Products or goods that are intended to last and are characterized by their long usage or service life, such as appliances, cars, and furniture.

Credit Availabilities

The ease with which individuals and businesses can obtain loans or credit, influenced by financial market conditions and regulatory policies.

Capacity Utilization

A measure of how much of a firm's or economy's productive capacity is being used, typically expressed as a percentage.