Use the production possibilities data below for Austria and Italy to answer the following question(s).
Table 2-1

-Refer to Table 2-1. Which of the following is true?
A) Austria has the comparative advantage in both goods.
B) Austria has the comparative advantage in food.
C) Italy has the comparative advantage in food.
D) It would be impossible for Austria and Italy to gain from trade.

Question

Use the production possibilities data below for Austria and Italy to answer the following question(s).
Table 2-1
 
-Refer to Table 2-1. Which of the following is true?
A) Austria has the comparative advantage in both goods. 
B) Austria has the comparative advantage in food. 
C) Italy has the comparative advantage in food. 
D) It would be impossible for Austria and Italy to gain from trade.

Quizplus · Accepted Answer

The Answer of Use the production possibilities data below for Austria and Italy to answer the following question(s).
Table 2-1
 
-Refer to Table 2-1. Which of the following is true?
A) Austria has the comparative advantage in both goods. 
B) Austria has the comparative advantage in food. 
C) Italy has the comparative advantage in food. 
D) It would be impossible for Austria and Italy to gain from trade.

Use the Production Possibilities Data Below for Austria and Italy