Multiple Choice
Table 16.1
Table 16.1 shows the quantities of cookies and coffee that can be produced with the full amount of resources available in each of two countries, Alpha and Beta.
-By looking at Table 16.1, we know that
A) Alpha has absolute advantage in producing both goods.
B) Beta has absolute advantage in producing both goods.
C) Neither has absolute advantage in producing either goods.
D) Alpha has absolute advantage in producing cookies, while Beta has absolute advantage in producing coffee.
Correct Answer:
Verified
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