Asked by
Jenny KANNEH
on Oct 25, 2024Verified
France and England both produce wine and clothing with constant opportunity costs.France will have a comparative advantage in wine production if:
A) it can produce more wine than England.
B) its labor productivity in wine production is greater than England's.
C) the absolute cost of producing wine is lower in France than in England.
D) the opportunity cost of wine production is lower in France than in England.
Comparative Advantage
The ability of an individual or group to carry out a particular economic activity (like producing a specific good or service) more efficiently than another activity.
Opportunity Cost
The cost of opting for one alternative over another, represented by the foregone benefits of the option not chosen.
France
A country in Western Europe known for its rich history, cultural heritage, and significant contributions to art, science, and philosophy.
- Invoke the principles of comparative and absolute advantages in the context of international trading and their role in forming trade pathways.
Verified Answer
DM
Learning Objectives
- Invoke the principles of comparative and absolute advantages in the context of international trading and their role in forming trade pathways.