In a two-country, two-product world, the statement "Germany enjoys a comparative advantage over France in autos relative to ships" is equivalent to
A) France having a comparative advantage over Germany in ships.
B) France having a comparative disadvantage compared to Germany in autos and ships.
C) Germany having a comparative advantage over France in autos and ships.
D) France having no comparative advantage over Germany.
E) France should produce autos.

Question

Quizplus · Accepted Answer

The statement about Germany's comparative advantage in autos implies that France is relatively better at producing ships. Therefore, France has a comparative advantage over Germany in ships, making option A the correct choice. The other choices are not supported by the given statement.

In a Two-Country, Two-Product World, the Statement "Germany Enjoys a Comparative