
Issues in Economics Today 7th Edition by Robert Guell
Edition 7ISBN: 978-0078021817
Issues in Economics Today 7th Edition by Robert Guell
Edition 7ISBN: 978-0078021817 Exercise 10
Using simple linear production possibilities frontiers in a simple two-good, two-country model, absolute advantage is evident when
A) one country can make more of a good than the other country can.
B) the slopes of the two production possibilities frontiers are identical.
C) the slopes of the two production possibilities frontiers are different.
D) one country is incapable of producing one good.
A) one country can make more of a good than the other country can.
B) the slopes of the two production possibilities frontiers are identical.
C) the slopes of the two production possibilities frontiers are different.
D) one country is incapable of producing one good.
Explanation
Hence, option (b)is incorrect.
The slope...
Issues in Economics Today 7th Edition by Robert Guell
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