Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?

Question

Use the following to answer question(s): Production Possibilities in Alphaland and Omegaland
 
-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?

Quizplus · Accepted Answer

The exhibit shows that Alphaland has an absolute advantage in cars, while Omegaland has an absolute advantage in computers. This means that each country is better able to produce one of the two goods, so they differ in their abilities to produce them. B is incorrect because the exhibit shows that Omegaland is able to produce more computers than Alphaland, but it says nothing about the amount produced per year. C is incorrect because the exhibit shows that producing 10,000 cars per year would require Alphaland to give up 5,000 computers, so it could not produce 10,000 cars and 10,000 computers. D is partially correct but incomplete - Alphaland has an absolute advantage in cars, but the exhibit says nothing about its ability to produce computers.

Use the Following to Answer Question(s): Production Possibilities in Alphaland