If the slopes of the ________ involving corn and wheat in the United States and Canada are equal, specialization does not benefit either country.
A) supply curves
B) demand curves
C) production possibility frontiers
D) marginal revenue curves

Question

Quizplus · Accepted Answer

The correct answer is C) production possibility frontiers. If the slopes of the production possibility frontiers (PPFs) involving corn and wheat in the United States and Canada are equal, it means that both countries have the same opportunity costs for producing corn and wheat. In such a scenario, specialization according to comparative advantage does not benefit either country, as they are equally efficient in producing both goods.

If the Slopes of the ________ Involving Corn and Wheat