Use the following to answer questions:
Figure: Computers and Books
-(Figure: Computers and Books) According to the figure, both countries can increase consumption if:
A) both countries buy computers and books from each other.
B) both countries produce both computers and books.
C) country A produces only computers and buys books from country B.
D) country A produces only books and buys computers from country B.

Question

Use the following to answer questions:
Figure: Computers and Books 
-(Figure: Computers and Books) According to the figure, both countries can increase consumption if:
A) both countries buy computers and books from each other. 
B) both countries produce both computers and books. 
C) country A produces only computers and buys books from country B. 
D) country A produces only books and buys computers from country B.

Quizplus · Accepted Answer

If country A specializes in producing computers and country B specializes in producing books, they can trade with each other to increase overall consumption, benefiting from comparative advantage.

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