Assume That Germany Can Produce 10 Million Bottles of Beer

question 86

Multiple Choice

Assume that Germany can produce 10 million bottles of beer or 4 million bottles of vodka. Further assume that Russia can produce 7 million bottles of beer or 3 million bottles of vodka. As a result, which of the following is true with regard to absolute and comparative advantage?

• A)​Germany has the absolute advantage in beer and the comparative advantage in beer.
• B)​Germany has the absolute advantage in beer and the comparative advantage in vodka.
• C)​Russia has the absolute advantage in beer and the comparative advantage in beer.
• D)​Russia has the absolute advantage in beer and the comparative advantage in vodka.

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Definitions:

Estrogen

A group of steroid hormones, which play an essential role in sexual and reproductive development primarily in females.

Cognitive Development

The construction of thought processes, including remembering, problem solving, and decision-making, from childhood through adolescence to adulthood.

Interindividual Variability

The fact that people do not age in the same way or at the same rate.

Multidirectionality

In the context of cognitive development, the fact that some aspects of intellectual functioning may improve while others remain stable or decline.