Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?
A) Country A has a comparative advantage at producing cars.
B) Country A has a comparative advantage at producing trucks.
C) Country A has a comparative advantage at producing both cars and trucks.
D) Country B has a comparative advantage at producing both cars and trucks.

Question

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?
A) Country A has a comparative advantage at producing cars. 
B) Country A has a comparative advantage at producing trucks. 
C) Country A has a comparative advantage at producing both cars and trucks. 
D) Country B has a comparative advantage at producing both cars and trucks.

Quizplus · Accepted Answer

The Answer of  Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?
A) Country A has a comparative advantage at producing cars. 
B) Country A has a comparative advantage at producing trucks. 
C) Country A has a comparative advantage at producing both cars and trucks. 
D) Country B has a comparative advantage at producing both cars and trucks.

Refer to the Figure Shown, Which Represents the Production Possibilities