Question germany and japan both produce cars and beer the, Ask an Expert

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Question: Germany and Japan both produce cars and beer. The table below lists production possibilities per worker in each country (for example, one worker in Germany produces 8 cars or 10 cases of beer).

a. Which nation has an absolute advantage in car production? Which one has an absolute advantage in beer production? Explain your answers.

b. Which nation has a comparative advantage in car production? Which one has a comparative advantage in beer production? Explain your answers.

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