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Figure 34-7 ​ In Figure 34-7, AB Represents the Production Possibilities of Pestoland

Question 137

Multiple Choice

Figure 34-7 ​
Figure 34-7 ​ In Figure 34-7, AB represents the production possibilities of Pestoland and CD that of Pastaland. The graph indicates Pestoland has an absolute A) advantage in both pesto and pasta. B) and comparative advantage in both pesto and pasta. C) advantage in both goods, but a comparative advantage only in pesto. D) advantage in pesto only and a comparative advantage only in pasta.
In Figure 34-7, AB represents the production possibilities of Pestoland and CD that of Pastaland. The graph indicates Pestoland has an absolute


A) advantage in both pesto and pasta.
B) and comparative advantage in both pesto and pasta.
C) advantage in both goods, but a comparative advantage only in pesto.
D) advantage in pesto only and a comparative advantage only in pasta.

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