5. Use the information below to answer the questions that follow. a. Which country has the absolute...
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5. Use the information below to answer the questions that follow.
a. Which country has the absolute advantage in producing cars? In producing wheat?
b. For the United States, what is the opportunity cost of producing a car? What is the opportunity cost of producing a ton of wheat?
c. For Germany, what is the opportunity cost of producing a car? What is the opportunity cost of producing a ton of wheat?
d. If free trade is allowed, which country will export cars? Which country will export wheat? Explain.
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Aysha Ali
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