Consider the Following Information on Labor Hours Needed Per Unit

question 28

Multiple Choice

Consider the following information on labor hours needed per unit of output: Ignoring nonlabor inputs,which of the following statements is correct?

• A) France has an absolute advantage in the production of both goods.
• B) France has a comparative advantage in the production of both goods.
• C) the opportunity cost of a computer in Italy is 4 units of wine.
• D) the opportunity cost of a unit of wine in France is 2 computers.
• E) France produces more computers that Italy produces wine.

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Definitions:

Inedible Fish

Fish species that are not suitable for human consumption due to toxicity, conservation status, or poor taste.

Pollution

The contamination of the natural environment by harmful substances or energies, leading to adverse effects on living organisms and ecosystems.

Employment

The condition of working for pay, involving a formal agreement between an employer and an employee.

Major Field

The primary area of study chosen by a student in college or university, which determines the focus of their academic coursework and degrees.