Multiple Choice
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country's production possibilities frontier, it is clear that:
A) Country A should specialize in cars, Country B should specialize in trucks, and both could benefit from trade.
B) Country A should specialize in trucks, Country B should specialize in cars, and both will benefit from trade.
C) Country A will not benefit from trade.
D) Country B will lose by trading with Country A.
Correct Answer:
Verified
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