Figure 34-8

-Figure 34-8 has four sets of production possibility curves for two hypothetical countries.In which case will there be no advantage to trade between the two countries?

Question

Figure 34-8
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-Figure 34-8 has four sets of production possibility curves for two hypothetical countries.In which case will there be no advantage to trade between the two countries?

Quizplus · Accepted Answer

In case 1, both countries have identical production possibility curves, meaning they have the same production efficiencies and opportunity costs for the goods in question. Therefore, there is no comparative advantage, and trade would not benefit either country.

Figure 34-8 ​

Figure 34-8