Given the following Classical-type table showing the number of days of labor input required to obtain one unit of output of each of the two commodities in each of the three countries:
$\begin{array}{lcc}
&\underline{\text { wine}}&\underline{\text { clothing} }\
\text { Denmark } & 4 \text { days } & 6 \text { days } \
\text { Germany } & 3 \text { days } & 3 \text { days } \
\text { Portugal } & 5 \text { days } & 9 \text { days }
\end{array}$
Which one of the following statements is correct?
A) If trade is taking place, Germany will always be exporting wine.
B) If trade is taking place, Denmark will always be exporting clothing.
C) If trade is taking place, Portugal will always be importing clothing.
D) If trade is taking place and the terms of trade are 1 clothing:1.6 wine, Germany will be Exporting clothing and Denmark and Portugal will be importing clothing.

Question

Quizplus · Accepted Answer

Portugal requires the most days of labor to produce one unit of clothing (9 days) compared to Denmark (6 days) and Germany (3 days), making it the least efficient producer of clothing. Thus, Portugal would benefit from importing clothing from either Denmark or Germany, where it can be produced more efficiently.

Given the Following Classical-Type Table Showing the Number of Days