Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A) There is no benefit to the United States as a result of trading tomatoes or machinery with Mexico.
B) Mexico does not have an absolute advantage in the production of either good.
C) The United States has a comparative advantage in the production of machinery.
D) Mexico has a comparative advantage in the production of tomatoes.

Question

Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A) There is no benefit to the United States as a result of trading tomatoes or machinery with Mexico. 
B) Mexico does not have an absolute advantage in the production of either good. 
C) The United States has a comparative advantage in the production of machinery. 
D) Mexico has a comparative advantage in the production of tomatoes.

Quizplus · Accepted Answer

The Answer of  Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A) There is no benefit to the United States as a result of trading tomatoes or machinery with Mexico. 
B) Mexico does not have an absolute advantage in the production of either good. 
C) The United States has a comparative advantage in the production of machinery. 
D) Mexico has a comparative advantage in the production of tomatoes.