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Figure 2-12 Figure 2-12 Shows the Production Possibilities Frontiers

Question 201

Multiple Choice

Figure 2-12 Figure 2-12   Figure 2-12 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey. -Refer to Figure 2-12. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of milk? A)  Bora Bora B)  They have the same advantage. C)  Tahiti D)  cannot be determined Figure 2-12 shows the production possibilities frontiers for Tahiti and Bora Bora. Each country produces two goods, milk and honey.
-Refer to Figure 2-12. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of milk?


A) Bora Bora
B) They have the same advantage.
C) Tahiti
D) cannot be determined

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