Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure. Which of the following is true?
A)Moe has a comparative advantage in physics.
B)Moe's opportunity cost of studying for each subject is increasing.
C)Moe has a comparative advantage in economics.
D)Moe has an absolute advantage in economics.

Question

Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.  Which of the following is true?
A)Moe has a comparative advantage in physics. 
B)Moe's opportunity cost of studying for each subject is increasing. 
C)Moe has a comparative advantage in economics. 
D)Moe has an absolute advantage in economics.

Quizplus · Accepted Answer

The fact that his PPC is bow-shaped reflects increasing opportunity costs.

Moe Divides His Time Between Studying Physics and Studying Economics