The table represents the labor hours needed to make a bottle of wine or a pound of cheese in the countries of Spain and Portugal. For example, it takes a worker 1 hour to make a bottle of wine in Spain. Which of the following statements is true? Wine Cheese Spain 1 hour 2 hours Portugal 4 hours 4 hours O A. Spain has an absolute advantage in the production of both goods, but Portugal has a comparative advantage in the production of cheese. O B. Portugal has an absolute advantage in the production of both goods, but Spain has a comparative advantage in the production of wine. OC. Spain has an absolute advantage in the production of both goods, but Portugal has a comparative advantage in the production of wine. O D. Portugal has an absolute advantage in the production of both goods, but Spain has a comparative advantage in the production of cheese.

The table represents the labor hours needed to make a bottle of wine or a pound of cheese in the countries of Spain and Portugal. For example, it takes a worker 1 hour to make a bottle of wine in Spain. Which of the following statements is true? Wine Cheese Spain 1 hour 2 hours Portugal 4 hours 4 hours O A. Spain has an absolute advantage in the production of both goods, but Portugal has a comparative advantage in the production of cheese. O B. Portugal has an absolute advantage in the production of both goods, but Spain has a comparative advantage in the production of wine. OC. Spain has an absolute advantage in the production of both goods, but Portugal has a comparative advantage in the production of wine. O D. Portugal has an absolute advantage in the production of both goods, but Spain has a comparative advantage in the production of cheese.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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