The Figure Given Below Represents the PPC in Two Nations

question 66

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Refer to Figure 2.4 and identify the correct statement.

• A)Germany has comparative advantage in the production of cars.
• B)Korea has comparative advantage in the production of cars.
• C)Germany has comparative advantage in the production of food.
• D)Korea has a lower opportunity cost for making cars.
• E)Germany has a lower opportunity cost for making food.

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Definitions:

Bailment

The transfer of possession of property from one person to another under agreement that the property will be returned or otherwise disposed of according to the terms of the agreement.

Fixture

An item of property that is attached to a building or land in such a way that it is considered legally part of the property.

Farmer

An individual or entity engaged in the practice of cultivating land, raising crops, and feeding, breeding, and raising animals or produce as part of agriculture.

Barn

A large building used for the storage of farm products, sheltering livestock, or agricultural equipment storage.