If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then Germany has
A) a comparative advantage in the production of beer.
B) an absolute advantage in the production of beer.
C) a comparative advantage in the production of pizza.
D) a comparative advantage in the production of beer and pizza.
A
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Refer to Figure 10-6. A change in the price of popcorn only is shown in
A) Panel A. B) Panel B. C) Panel C. D) none of the above panels.
M2 is actually a smaller amount than M1
a. True b. False Indicate whether the statement is true or false