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Suppose John and Joe Each Have Different Production Possibility Frontiers;John

Question 118

Multiple Choice

Suppose John and Joe each have different production possibility frontiers;John specializes in cloth and Joe specializes in corn.John's island unexpectedly has exceptionally good weather,and suddenly he is twice as productive in the production of both corn and cloth.Select the best statement.


A) This is an example of unemployed resources becoming employed.
B) As a result,John will have an absolute advantage in both corn and cloth.
C) As a result,it is possible that John and Joe will switch the goods in which they specialize.
D) There will be no change to the goods in which John and Joe specialize,because John's comparative advantage has not changed.
E) There will be a change to the goods in which John and Joe specialize,because John's opportunity cost of corn has decreased.

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