Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Cheese (Pounds) Wine (Bottles) Cheese (Pounds) 16 0. 25 20 1. 12 15 10 3 4. Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. OB. France has a comparative advantage producing wine and cheese. OC. Germany has a comparative advantage producing wine and cheese. -OD. Neither has a comparative advantage producing wine or cheese. OE. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. Suppose that France is currently producing 1 bottle of wine and 12 pounds of cheese and Germany is currently producing 3 bottles of wine and 10 pounds of cheese 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 14 pounds of cheese. After specialization and trade, France gains by consuming the same amount of wine andadditional pound(s) of cheese (enter a numeric rosponse using an intege and Germany gains by oconsuming the same amount of wine and additional pound(a) of cheese.
Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day. France Germany Wine (Bottles) Cheese (Pounds) Wine (Bottles) Cheese (Pounds) 16 0. 25 20 1. 12 15 10 3 4. Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. OB. France has a comparative advantage producing wine and cheese. OC. Germany has a comparative advantage producing wine and cheese. -OD. Neither has a comparative advantage producing wine or cheese. OE. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. Suppose that France is currently producing 1 bottle of wine and 12 pounds of cheese and Germany is currently producing 3 bottles of wine and 10 pounds of cheese 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 14 pounds of cheese. After specialization and trade, France gains by consuming the same amount of wine andadditional pound(s) of cheese (enter a numeric rosponse using an intege and Germany gains by oconsuming the same amount of wine and additional pound(a) of cheese.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each country can produce in a day.
France
Germany
Wine (Bottles)
Cheese (Pounds)
16
Wine (Bottles)
Cheese (Pounds)
12
8.
4.
25
20
15
2
3
3
4
10
4
Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese?
O A. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese.
O B. France has a comparative advantage producing wine and cheese.
OC. Germany has a comparative advantage producing wine and cheese.
-OD. Neither has a comparative advantage producing wine or cheese.
OE. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine.
Suppose that France is currently producing 1 bottle of wine and 12 pounds of cheese and Germany is currently producing 3 bottles of wine and 10 pounds of cheese.
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 14 pounds of cheese.
After specialization and trade, France gains by consuming the same amount of wine and additional pound() of cheese (enter a numeric response using an integer)
and Germany gains by consuming the same amount of wine andadditional pound(s) of cheese.
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