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Refer to Figure 35

Question 73

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Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico.These two curves indicate that A) The United States has a comparative advantage in the production of machinery. B) Mexico has an absolute advantage in the production of machinery. C) The United States has an absolute advantage in the production of both goods. D) The United States does not have an absolute advantage in the production of either gooD.The United States has an absolute advantage in the production of both goods since its entire production possibilities curve is farther from the origin than Mexico's. Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico.These two curves indicate that


A) The United States has a comparative advantage in the production of machinery.
B) Mexico has an absolute advantage in the production of machinery.
C) The United States has an absolute advantage in the production of both goods.
D) The United States does not have an absolute advantage in the production of either gooD.The United States has an absolute advantage in the production of both goods since its entire production possibilities curve is farther from the origin than Mexico's.

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