If the US Can Produce Pizza for $5 Each and Barrels of Barrels

question 47

Multiple Choice

If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then Germany has

• A)a comparative advantage in the production of beer.
• B)an absolute advantage in the production of beer.
• C)a comparative advantage in the production of pizza.
• D)a comparative advantage in the production of beer and pizza.

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Definitions:

Output

The total amount of goods or services produced by a company, sector, or economy.

Energy Input

Refers to the energy required to produce goods and services, including electricity, fossil fuels, and renewable sources.

Per Capita Energy Use

The average amount of energy consumed per person in a given area or country.

Developed Countries

Nations with a high level of economic development, typically characterized by a high gross domestic product (GDP) per capita.