The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce: Refer to the table above. Based on the given information, we see that:

Question

The table below shows the output (either machines or wine) that each unit of input in France and Germany can produce:  Refer to the table above. Based on the given information, we see that:

Quizplus · Accepted Answer

Germany has a higher output per unit of input in producing machines compared to France, while France has a higher output per unit of input in producing wine. Therefore, Germany does not have an absolute advantage over France in either output, and option C is the correct choice. Option A is incorrect because France does not have an absolute advantage over Germany in producing machines. Option B is incorrect because the table only shows that Germany has a lower productivity in producing wine but does not necessarily imply an absolute disadvantage. Option D is also incorrect because even though France and Germany do not have absolute advantages over each other in producing either output, they can still benefit from trading with each other by specializing in their respective comparative advantages.

The Table Below Shows the Output (Either Machines or Wine)