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(Figure: Ships and Autos in Countries a and B) Two

Question 193

Multiple Choice

(Figure: Ships and Autos in Countries A and B) Two countries manufacture autos and ships. Based on the graphs (Figure: Ships and Autos in Countries A and B)  Two countries manufacture autos and ships. Based on the graphs   A)  Country A should specialize in automotive manufacturing and country B should specialize in ship building. B)  There are no advantages to trade because country A can produce more of both goods. C)  There are no advantages to trade because the lines are downward sloping. D)  Country A should specialize in ship building and country B should specialize in automotive manufacturing.


A) Country A should specialize in automotive manufacturing and country B should specialize in ship building.
B) There are no advantages to trade because country A can produce more of both goods.
C) There are no advantages to trade because the lines are downward sloping.
D) Country A should specialize in ship building and country B should specialize in automotive manufacturing.

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