If the USCan Produce Pizza for $5 Each and Barrels of Beer

question 5

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

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

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