Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Assuming both countries have the same amount of resources available to them, which of the following statements is true?
A) Country A has an absolute advantage at producing cars, and Country B has an absolute advantage at producing trucks.
B) Country A has an absolute advantage at producing trucks and Country B has an absolute advantage at producing cars.
C) Country A has an absolute advantage at producing both cars and trucks.
D) Country B has an absolute advantage at producing both cars and trucks.

Question

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Assuming both countries have the same amount of resources available to them, which of the following statements is true?
A) Country A has an absolute advantage at producing cars, and Country B has an absolute advantage at producing trucks. 
B) Country A has an absolute advantage at producing trucks and Country B has an absolute advantage at producing cars. 
C) Country A has an absolute advantage at producing both cars and trucks. 
D) Country B has an absolute 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. Assuming both countries have the same amount of resources available to them, which of the following statements is true?
A) Country A has an absolute advantage at producing cars, and Country B has an absolute advantage at producing trucks. 
B) Country A has an absolute advantage at producing trucks and Country B has an absolute advantage at producing cars. 
C) Country A has an absolute advantage at producing both cars and trucks. 
D) Country B has an absolute advantage at producing both cars and trucks.

Refer to the Figure Shown, Which Represents the Production Possibilities