Question

Given the data in the chart above, which statement explains why these three countries would benefit from specialization and trade? Select one: a. Each country has an absolute advantage in one activity. b. No country has an absolute advantage in all activities. c. One country has a comparative advantage in all activities. d. One country has an absolute advantage in all activities.

Answer 1

b. No country has an absolute advantage in all activities

Step-by-step explanation:

• The data form the graph suggest that the statement that explains these countries like Germany, France, and Italy, will be formed each other is unknown.

• As the absolute advantage is when the counties have a complete advantage in the production of that one resource that they hold absolute advantages in.

• Thus no country has a complete advantage all share and has some advantages.