The production of highperformance cars has the lowest opportunity cost in Germany. This means that Germany:
A) has an absolute advantage in the production of highperformance cars.
B) has a comparative advantage in the production of highperformance cars.
C) produces the least number of high performance cars with a given amount of resources when compared to other nations.
D) has the highest cost of production of highperformance cars.

Question

The production of high­performance cars has the lowest opportunity cost in Germany. This means that Germany:
A) has an absolute advantage in the production of high­performance cars.
B) has a comparative advantage in the production of high­performance cars.
C) produces the least number of high­ performance cars with a given amount of resources when compared to other nations.
D) has the highest cost of production of high­performance cars.

Quizplus · Accepted Answer

The statement mentions that the production of high-performance cars has the lowest opportunity cost in Germany. This means that Germany can produce high-performance cars at a relatively lower cost compared to other countries. This indicates that Germany has a comparative advantage in the production of high-performance cars. Therefore, option B is the correct choice.

The Production of High­performance Cars Has the Lowest Opportunity Cost

The Production of Highperformance Cars Has the Lowest Opportunity Cost