Question

Given the data in the chart above, which statement explains why these three countries would benefit from specialization and trade?

Each country has an absolute advantage in one activity.

No country has an absolute advantage in all activities.

One country has a comparative advantage in all activities.

One country has an absolute advantage in all activities.

Answer 1

The correct answer is "No country has an absolute advantage in all activities".

Step-by-step explanation:

Greece, France, and Italy have similar characteristics in terms of the number of hours worked to produce wine and olive oil. None of them has an absolute or comparative advantage in any or all of the activities, given that the amounts of working hours are similar.

Have a nice day!

Answer 2

Given the chart, France, Italy and Greece all have very similar hours with similar averages for each activity. Therefore, no country has an absolute advantage in all of the activities.