Consider the Following Information on Labor Hours Needed Per Unit

question 119

Multiple Choice

Consider the following information on labor hours needed per unit of output:

Ignoring nonlabor inputs,which of the following statements is correct?

• A)France has an absolute advantage in the production of both goods.
• B)France has a comparative advantage in the production of both goods.
• C)the opportunity cost of a computer in Italy is 4 units of wine.
• D)the opportunity cost of a unit of wine in France is 2 computers.
• E)France produces more computers that Italy produces wine.

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Definitions:

Radiology

The medical science that uses radiation or other imaging technologies to diagnose and treat diseases.

Suffix

A suffix is a letter or group of letters added to the end of a word to change its meaning or grammatical function.

-logy

A suffix used to indicate the study or science of a particular subject.

Milliliter

A metric unit of volume equal to one-thousandth of a liter, commonly used to measure liquids.