In France 1 Unit of Labour Can Produce 3 Units

question 11

Multiple Choice

In France 1 unit of labour can produce 3 units of wheat or 5 units of wine;in Germany 1 unit of labour can produce 4 units of wheat or 10 units of wine,it is correct to state that

• A)Germany has an absolute advantage in producing both wheat and wine.
• B)Germany has a comparative advantage in producing wheat.
• C)France has a comparative advantage in producing wine.
• D)All of these are correct.

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