Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Assuming both countries have the same amount of resources available to them,which of the following statements is true? Country A has:
A)an absolute advantage in the production of cars,and Country B has the absolute advantage in the production of trucks.
B)an absolute advantage in the production of trucks,and Country B has the absolute advantage in the production of cars.
C)the absolute advantage in the production of both cars and trucks.
D)the absolute advantage in neither the production of cars nor trucks.

Question

Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Assuming both countries have the same amount of resources available to them,which of the following statements is true? Country A has:
A)an absolute advantage in the production of cars,and Country B has the absolute advantage in the production of trucks. 
B)an absolute advantage in the production of trucks,and Country B has the absolute advantage in the production of cars. 
C)the absolute advantage in the production of both cars and trucks. 
D)the absolute advantage in neither the production of cars nor trucks.

Quizplus · Accepted Answer

The Answer of  Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Assuming both countries have the same amount of resources available to them,which of the following statements is true? Country A has:
A)an absolute advantage in the production of cars,and Country B has the absolute advantage in the production of trucks. 
B)an absolute advantage in the production of trucks,and Country B has the absolute advantage in the production of cars. 
C)the absolute advantage in the production of both cars and trucks. 
D)the absolute advantage in neither the production of cars nor trucks.

Refer to the Figure Shown,which Represents the Production Possibilities Frontiers