Suppose that Hungary and Spain both produce cheese and wine. Hungary's opportunity cost of producing a bottle of wine is 3 pounds of cheese. That is, Hungary forgoes the production of 3 pounds of cheese when it produces a bottle of wine. Spain's opportunity cost of producing a bottle of wine is 2 pounds of cheese.
(A. neither Italy or New Zealand, B. both Italy and New Zealand, C. Italy has, D. New Zealand has) a comparative advantage in the production of wine.
(A. neither Italy or New Zealand, B. both Italy and New Zealand, C. Italy has, D. New Zealand has) a comparative advantage in the production of cheese.

Explanation:

To compare the advantages of two countries to produce two goods, like Hungary and Spain both producing cheese and wine, you should use the comparative cost advantages.

The comparative cost advantage tells which country has a greater comparative advange than the other by comparing the ratio of the opportunity cost.

Hungary can produce 3 pounds of cheese when it produces a bottle of wine. Hence its opportunity cost ratio is:

Spain can produce 2 pounds of cheese when produce a bottle of wine. Hence its opportunity cost ratio is:

Comparative advantage to produce wine:

To find which country has the comparative advantage in the prouction of wine compare: to Hungary, 1 bottle of wine costs 3 lb of cheese, while to Spain 1 bottle of wine costs 1 lb of cheese. Hence, since the opportunity cost of producing wine in terms of the production of cheese is lower for Spain, Spain has a comparative advantage in the production of wine.

Comparative advantage to produce cheese:

The opposite is true for the production of cheese. Since 3 lb of cheese cost  1 bottle of wine to Hungary, while 1 lb of cheese cost the 1 bottle, the opportunity cost of producing cheese in terms of the production of wine is lower for Hungary, Hungary has a comparative advantage in the production of cheese.

happiness is the correct luck

explanation:

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know