Solved

Country 1 Produces Two Goods,A and B

Question 141

Multiple Choice

Country 1 produces two goods,A and B.Country 2 produces the same two goods.Currently,country 1 produces 100A and 200B and country 2 produces 300A and 700B.Which of the following statements is true?


A) If country 1 is on its production possibilities frontier,then country 2 must be on its PPF,too.
B) The PPF for country 1 is necessarily closer to the origin (or further to the left) than the PPF for country 2.
C) If country 1 is productive inefficient,then so is country 2.
D) Country 2 is operating on its PPF,but country 1 is clearly not operating on its PPF.
E) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions