Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.After examining the production possibilities of each country,we can surmise that Country A's opportunity cost of a car:
A)is lower than that of Country B,and so they should specialize in cars and trade.
B)is higher than that of Country B,and so they should specialize in cars and trade.
C)is the same as that of Country B,and so they will not benefit from trade.
D)does not determine a country's decision to trade; it is absolute advantage that drives that decision.

Question

Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.After examining the production possibilities of each country,we can surmise that Country A's opportunity cost of a car:
A)is lower than that of Country B,and so they should specialize in cars and trade. 
B)is higher than that of Country B,and so they should specialize in cars and trade. 
C)is the same as that of Country B,and so they will not benefit from trade. 
D)does not determine a country's decision to trade; it is absolute advantage that drives that decision.

Quizplus · Accepted Answer

The Answer of  Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.After examining the production possibilities of each country,we can surmise that Country A's opportunity cost of a car:
A)is lower than that of Country B,and so they should specialize in cars and trade. 
B)is higher than that of Country B,and so they should specialize in cars and trade. 
C)is the same as that of Country B,and so they will not benefit from trade. 
D)does not determine a country's decision to trade; it is absolute advantage that drives that decision.

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