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France Germany Wine (Bottles) Schnitzel (Pounds) Wine (Bottles) Schnitzel (Pounds) 25 20 15 10 6. 3 5 Who has the comparative advantage in producing wine and who has the comparative advantage in producing schnitzel? A. France has a comparative advantage producing wine and Germany has a comparative advantage producing schnitzel. O B. Germany has a comparative advantage producing wine and schnitzel. OC. France has a comparative advantage producing wine and schnitzel. O D. Neither has a comparative advantage producing wine or schnitzel. O E. France has a comparative advantage producing schnitzel and Germany has a comparative advantage producing wine. 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 10 pounds of schnitzel. Then, assume instead that France and Germany specialize by producing only the good which they have a comparative advantage and then trade 3 bottles of wine for 9 pounds of schnitzel. After specialization and trade, France gains by consuming the same amount of wine and 3 additional pound(s) of schnitzel (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and additional pound(s of schnitzel.

France Germany Wine (Bottles) Schnitzel (Pounds) Wine (Bottles) Schnitzel (Pounds) 25 20 15 10 6. 3 5 Who has the comparative advantage in producing wine and who has the comparative advantage in producing schnitzel? A. France has a comparative advantage producing wine and Germany has a comparative advantage producing schnitzel. O B. Germany has a comparative advantage producing wine and schnitzel. OC. France has a comparative advantage producing wine and schnitzel. O D. Neither has a comparative advantage producing wine or schnitzel. O E. France has a comparative advantage producing schnitzel and Germany has a comparative advantage producing wine. 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 10 pounds of schnitzel. Then, assume instead that France and Germany specialize by producing only the good which they have a comparative advantage and then trade 3 bottles of wine for 9 pounds of schnitzel. After specialization and trade, France gains by consuming the same amount of wine and 3 additional pound(s) of schnitzel (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and additional pound(s of schnitzel.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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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 25 1 6 1 20 2 4 2 15 3 2 3 10 4 4 5 Who has the comparative advantage in producing wine and who has the comparative advantage in producing schnitzel? A. France has a comparative advantage producing wine and Germany has a comparative advantage producing schnitzel. O B. Germany has a comparative advantage producing wine and schnitzel. O C. France has a comparative advantage producing wine and schnitzel. O D. Neither has a comparative advantage producing wine or schnitzel. O E. France has a comparative advantage producing schnitzel and Germany has a comparative advantage producing wine. 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 10 pounds of schnitzel. Then, assume instead that France and Germany specialize by producing only the good for which they have a comparative advantage and then trade 3 bottles of wine for 9 pounds of schnitzel. After specialization and trade, France gains by consuming the same amount of wine and 3 additional pound(s) of schnitzel (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and additional pound(s) of schnitzel.
Transcribed Image Text: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 25 1 6 1 20 2 4 2 15 3 2 3 10 4 4 5 Who has the comparative advantage in producing wine and who has the comparative advantage in producing schnitzel? A. France has a comparative advantage producing wine and Germany has a comparative advantage producing schnitzel. O B. Germany has a comparative advantage producing wine and schnitzel. O C. France has a comparative advantage producing wine and schnitzel. O D. Neither has a comparative advantage producing wine or schnitzel. O E. France has a comparative advantage producing schnitzel and Germany has a comparative advantage producing wine. 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 10 pounds of schnitzel. Then, assume instead that France and Germany specialize by producing only the good for which they have a comparative advantage and then trade 3 bottles of wine for 9 pounds of schnitzel. After specialization and trade, France gains by consuming the same amount of wine and 3 additional pound(s) of schnitzel (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and additional pound(s) of schnitzel.
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