Refer to the above diagrams.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The data suggest that:

Question

Quizplus · Accepted Answer

The production possibility curves for both West Lothian and East Lothian show that West Lothian can produce more beer than East Lothian, while East Lothian can produce more pizza than West Lothian. This suggests that West Lothian should specialize in producing and exporting beer, while East Lothian should specialize in producing and exporting pizza. Trading possibilities curve shows that both countries can benefit from trade by specializing in their respective products and exchanging them with each other. Therefore, the best choice is A.

Refer to the Above Diagrams