Multiple Choice
Graph 3-2 These figures illustrate the production possibilities available to Amy and Jim with 8 hours of labour.
-According to Graph 3-2:
A) Amy has an absolute advantage in both goods, and Jim has an absolute advantage in neither goods
B) Amy has an absolute advantage in neither goods, and Jim has an absolute advantage in both goods
C) Amy has an absolute advantage in coffee, and Jim has an absolute advantage in doughnuts
D) Amy has an absolute advantage in doughnuts, and Jim has an absolute advantage in coffee
Correct Answer:
Verified
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