Suppose that in France 40 labor hours are required to produce a liter of wine. In Italy, 30 labor hours are required to produce a liter of wine. These figures indicate that Italy has an absolute advantage in wine production. France has an absolute advantage in wine production . Italy has a comparative advantage in wine production. France has

Suppose that in France 40 labor hours are required to produce a liter of wine. In Italy, 30 labor hours are required to produce a liter of wine. These figures indicate that Italy has an absolute advantage in wine production. France has an absolute advantage in wine production . Italy has a comparative advantage in wine production. France has

Name: Suppose that in France 40 labor hours are required to produce a liter
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Description: Suppose that in France 40 labor hours are required to produce a liter of wine. In Italy, 30 labor hours are required to produce a liter of wine. These figures indicate thatItaly has an absolute advantage in wine production.France has an absolute adva

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter2: Economic Tools And Economic Systems

Section: Chapter Questions

Problem 2.3P

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The Table below shows the amount of labor hours needed to produce cars and airplanes by Japan and Korea. Assume that each country has 2400 hours of labor available. Japan has an absolute advantage in the production of: Table Labor Hours Needed to Make 1 Car 30 Airplane 150 Japan Korea 50 150 cars and a comparative advantage in the production of cars. cars and a comparative advantage in the production of airplanes. O neither good and a comparative advantage in the production of cars. neither good and a comparative advantage in the production of airplanes
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Suppose that France and Germany both produce wine and schnitzel. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Schnitzel (Pounds) Wine (Bottles) Schnitzel (Pounds) 8 15 1 6. 1 12 2 4 2 3 2 4 4 5 Who has the comparative advantage in producing wine and who has the comparative advantage in producing schnitzel? O A. Neither has a comparative advantage producing wine or schnitzel. B. Germany has a comparative advantage producing wine and schnitzel. C. France has a comparative advantage producing wine and schnitzel. D. France has a comparative advantage producing schnitzel and Germany has a comparative advantage producing wine. E. France has a comparative advantage producing wine and Germany has a comparative advantage producing schnitzel. Suppose that France is currently producing 1 bottle of wine and 6 pounds of schnitzel and Germany is currently producing 3 bottles of wine and 6 pounds of schnitzel. Then, assume…