For Each Bottle of Wine That Italy Produces, It Gives

question 119

Multiple Choice

For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese.France gives up the opportunity to produce of 1 bottle of wine for every 25 pounds of cheese it produces.Which of the following is true about the comparative advantage between the two countries?

• A)Italy has the comparative advantage in cheese.
• B)Italy has the comparative advantage in wine.
• C)France has the comparative advantage in wine and cheese.
• D)France has the comparative advantage in wine.

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Definitions:

Transfer of Shares

The process by which ownership of a company's stock is moved from one party to another.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.

Treasury Shares

Shares that were issued and subsequently reacquired by the issuing corporation, not considered when calculating earnings per share or dividends.

Issued

The process of distributing something, such as a publication, a financial instrument, or an official document, to the public or to a specific group.