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.
Correct Answer:
Verified
Q61: Suppose that,given the same number of workers,the
Q63: Suppose that a worker in Country A
Q68: Suppose an American worker can make 20
Q70: Suppose an American worker can make 20
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents