Refer to the information provided in Table 20.4 below to answer the question(s) that follow.
Table 20.4GermanyChileBeerWineBeerWine(cases)(cases)(cases)(cases)75030 060152412453018 24304512 361560 6 48075 0 60 Refer to Table 20.4. Germany has
A. an absolute advantage in wine production.
B. an absolute advantage in beer production.
C. a comparative advantage in beer production.
D. all of the above.
Answer: D
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Other things the same, if U.S. net capital outflow rises, so does U.S. saving
a. True b. False Indicate whether the statement is true or false
If price is between the break-even point and the shutdown point, in the long run the firm will
A. operate. B. shut down. C. stay in business. D. go out of business.
Value added is the
A. Increase in market value of a product that takes place at each stage of the production process. B. Impact on third parties caused by market activities. C. Difference between nominal GDP and real GDP. D. Addition to GDP because nonmarket activities are captured.
Which of the following is FALSE about a comparison between a perfectly competitive firm and a monopolistically competitive firm?
A. In the long run, the perfectly competitive firm will produce at the minimum of the average total cost curve, while the monopolistically competitive firm will produce to the left of the minimum of the average total cost curve. B. Both the perfectly competitive and monopolistically competitive firm will earn economic profits equal to zero in the long-run. C. A perfectly competitive firm has a horizontal demand curve, while a monopolistically competitive firm has a downward sloping demand curve. D. In the short run, a perfectly competitive firm will earn zero economic profits, while a monopolistically competitive firm will earn positive economic profits.