Multiple Choice
Refer to the above diagrams.The solid lines are production possibilities curves; the dashed lines are trading possibilities curves.The data suggest that:
A) West Lothian should specialize in, and export, beer.
B) both countries will be better off if they do not engage in specialization and trade involving these two products.
C) West Lothian should specialize in, and export, pizza.
D) East Lothian should specialize in, and export, beer.
Correct Answer:

Verified
Correct Answer:
Verified
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