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

question 11

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

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Definitions:

Symbols

Abstract units of information that stand for or represent objects, ideas, or actions, forming the basis of human communication and thought.

Number Words

Words that denote numbers, allowing for the expression and communication of quantities.

Specific Quantities

Quantities that are clearly defined or precise, not vague or general.

Mathematics

is the abstract science of numbers, quantity, and space, either studied in its own right (pure mathematics) or as applied to other disciplines such as physics and engineering (applied mathematics).