Homework Help is Here – Start Your Trial Now!
Business
Economics
Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each Germany France Wine (Bottles) 0 3 4 Cheese (Pounds) Wine (Bottles) 0 8 6 4 2 0 2 3 4 5 Cheese (Pounds) Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? OA. Germany has a comparative advantage producing wine and cheese. OB. Neither has a comparative advantage producing wine or cheese. OC. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. OD. France has a comparative advantage producing wine and cheese. O E. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. 20 16 12 8 4 0 Suppose that France is currently producing 1 bottle of wine and 6 pounds of cheese and Germany is currently producing 3 bottles of wine and 8 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 9 pounds of cheese. After specialization and trade, France gains by consuming the same amount of wine and additional pound(s) of cheese (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and additional pound(s) of cheese.

Suppose that France and Germany both produce wine and cheese. The table below shows combinations of the goods that each Germany France Wine (Bottles) 0 3 4 Cheese (Pounds) Wine (Bottles) 0 8 6 4 2 0 2 3 4 5 Cheese (Pounds) Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? OA. Germany has a comparative advantage producing wine and cheese. OB. Neither has a comparative advantage producing wine or cheese. OC. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. OD. France has a comparative advantage producing wine and cheese. O E. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. 20 16 12 8 4 0 Suppose that France is currently producing 1 bottle of wine and 6 pounds of cheese and Germany is currently producing 3 bottles of wine and 8 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 9 pounds of cheese. After specialization and trade, France gains by consuming the same amount of wine and additional pound(s) of cheese (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and additional pound(s) of cheese.

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...
See similar textbooks
icon
Related questions
Question
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. Germany France Wine (Bottles) Cheese (Pounds) 0 1 2 3 4 8 6 4 2 0 Wine (Bottles) 0 1 2 3 4 5 Cheese (Pounds) 20 16 12 8 4 0 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. Germany has a comparative advantage producing wine and cheese. OB. Neither has a comparative advantage producing wine or cheese. O C. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. France has a comparative advantage producing wine and cheese. O D. O E. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. Suppose that France is currently producing 1 bottle of wine and 6 pounds of cheese and Germany is currently producing 3 bottles of wine and 8 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 9 pounds of cheese. After specialization and trade, France gains by consuming the same amount of wine and additional pound(s) of cheese (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and additional pound(s) of cheese.
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. Germany France Wine (Bottles) Cheese (Pounds) 0 1 2 3 4 8 6 4 2 0 Wine (Bottles) 0 1 2 3 4 5 Cheese (Pounds) 20 16 12 8 4 0 Who has the comparative advantage in producing wine and who has the comparative advantage in producing cheese? O A. Germany has a comparative advantage producing wine and cheese. OB. Neither has a comparative advantage producing wine or cheese. O C. France has a comparative advantage producing cheese and Germany has a comparative advantage producing wine. France has a comparative advantage producing wine and cheese. O D. O E. France has a comparative advantage producing wine and Germany has a comparative advantage producing cheese. Suppose that France is currently producing 1 bottle of wine and 6 pounds of cheese and Germany is currently producing 3 bottles of wine and 8 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 9 pounds of cheese. After specialization and trade, France gains by consuming the same amount of wine and additional pound(s) of cheese (enter a numeric response using an integer) and Germany gains by consuming the same amount of wine and additional pound(s) of cheese.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Comparative Advantage
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
Principles of Economics, 7th Edition (MindTap Cou…
Principles of Economics, 7th Edition (MindTap Cou…
Economics
ISBN:
9781285165875
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781305971509
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Economics
ISBN:
9781285165912
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS