The Table Below Shows the Output (Either Machines or Wine)

question 143

Multiple Choice

The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce: Refer to the table above. Based on the given information, we see that:

• A) France has a comparative advantage in producing wine
• B) Germany has a comparative advantage in producing wine
• C) Neither country has a comparative advantage in producing wine
• D) Germany can produce machines at a lower opportunity cost than France

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Definitions:

Potential Injury

The possibility of harm or damage that could occur under certain circumstances or due to specific actions.

Security System

A setup of interconnected devices and components designed to protect and monitor premises against burglary, theft, and other unauthorized access.

Basic Postulate

A fundamental assumption or principle that serves as the foundation for a theory, argument, or system of belief.

Economic Policy

A course of action or a set of decisions made by a government or central authority that aims to influence or control the behavior of the economy.