Figure 16-3
Quantities of goods that can be produced in one day with available resources:

-In Figure 16-3,if Costa Rica and Panama have identical resources,then Panama has a(n)
A)absolute advantage only in producing bicycles
B)comparative advantage in producing both bicycles and rugs
C)absolute advantage only in producing rugs
D)comparative advantage only in producing rugs
E)absolute advantage in producing both rugs and bicycles

Question

Figure 16-3
Quantities of goods that can be produced in one day with available resources:
 
-In Figure 16-3,if Costa Rica and Panama have identical resources,then Panama has a(n)
A)absolute advantage only in producing bicycles 
B)comparative advantage in producing both bicycles and rugs 
C)absolute advantage only in producing rugs 
D)comparative advantage only in producing rugs 
E)absolute advantage in producing both rugs and bicycles

Quizplus · Accepted Answer

The Answer of Figure 16-3
Quantities of goods that can be produced in one day with available resources:
 
-In Figure 16-3,if Costa Rica and Panama have identical resources,then Panama has a(n)
A)absolute advantage only in producing bicycles 
B)comparative advantage in producing both bicycles and rugs 
C)absolute advantage only in producing rugs 
D)comparative advantage only in producing rugs 
E)absolute advantage in producing both rugs and bicycles

Figure 16-3 Quantities of Goods That Can Be Produced in One Day