Exhibit 17-1
-Exhibit 17-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.Lambda has a comparative advantage in coconuts and Beta has a comparative advantage in fish.

Question

Exhibit 17-1 
-Exhibit 17-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.Lambda has a comparative advantage in coconuts and Beta has a comparative advantage in fish.

Quizplus · Accepted Answer

The exhibit clearly shows that Lambda has a higher slope for the coconut production possibility frontier compared to Beta, indicating that Lambda has a comparative advantage in producing coconuts. Similarly, Beta has a higher slope for the fish production possibility frontier indicating a comparative advantage in producing fish. Therefore, option A is true.

Exhibit 17-1 -Exhibit 17-1 Shows the Production Possibilities Frontiers for the Countries