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In France 1 Unit of Labour Can Produce 3 Units

Question 39

Multiple Choice

In France 1 unit of labour can produce 3 units of wheat or 5 units of wine;in Germany 1 unit of labour can produce 4 units of wheat or 10 units of wine,it is correct to state that


A) Germany has an absolute advantage in producing both wheat and wine.
B) Germany has a comparative advantage in producing wheat.
C) France has a comparative advantage in producing wine.
D) All of these are correct.

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