A country's comparative advantage can be illustrated by the graph of the production possibilities frontier.

Question

Quizplus · Accepted Answer

The production possibilities frontier (PPF) quantitatively represents a country's comparative advantage by showing the trade-offs between producing two goods, and the slope of the PPF represents the opportunity cost of producing one good in terms of the other. Countries with different resource endowments and technological capabilities will have different PPFs, indicating their comparative advantage in producing certain goods.

A Country's Comparative Advantage Can Be Illustrated by the Graph