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Exhibit 15-1 Production Possibilities Curves

Question 7

Multiple Choice

Exhibit 15-1 Production possibilities curves Exhibit 15-1 Production possibilities curves   -In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If these two nations trade, Nabia should specialize in the production of: A)  corn. B)  corn and wheat. C)  neither product since Pada has the comparative advantage in the production of both. D)  neither product since Pada has the absolute advantage in the production of both. E)  wheat.
-In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. If these two nations trade, Nabia should specialize in the production of:


A) corn.
B) corn and wheat.
C) neither product since Pada has the comparative advantage in the production of both.
D) neither product since Pada has the absolute advantage in the production of both.
E) wheat.

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