Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?Country A has an absolute advantage at producing both avocados and t-shirts.Country B has a comparative advantage at producing t-shirts.Country B would benefit from trade, but Country A would not.
A) I only
B) III only
C) I and II only
D) II and III only

Question

Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true?Country A has an absolute advantage at producing both avocados and t-shirts.Country B has a comparative advantage at producing t-shirts.Country B would benefit from trade, but Country A would not.
A) I only 
B) III only 
C) I and II only 
D) II and III only

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?Country A has an absolute advantage at producing both avocados and t-shirts.Country B has a comparative advantage at producing t-shirts.Country B would benefit from trade, but Country A would not.
A) I only 
B) III only 
C) I and II only 
D) II and III only

Refer to the Figure Shown, Which Represents the Production Possibilities