\quad\quad\quad\quad\quad\quad\text { Anaconda }

\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Bear }

\begin{array}{ccccccc}\hline \text { Production } & \text { Corn } && \text { Shoes } & \text { Production} & \text { Corn } && \text { Shoes }\\\text { point}&\text { (tons)}&&\text { (number)}&\text { point}&\text { (tons)}&&\text { (number) }\\\hline \mathrm{A} & 0 & \text { and } & 700 & \mathrm{~A} & 0 & \text { and } & 1000 \\\mathrm{~B} & 1 & \text { and } & 650 & \mathrm{~B} & 1 & \text { and } & 900 \\\mathrm{C} & 2 & \text { and } & 550 & \mathrm{C} & 2 & \text { and } & 700 \\\mathrm{D} & 3 & \text { and } & 350 & \mathrm{D} & 3 & \text { and } & 400 \\\mathrm{E} & 4 & \text { and } & 0 & \mathrm{E} & 4 & \text { and } & 0 \\\hline\end{array}

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The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The table shows that
A)Bear has an absolute advantage in the production of both goods.
B)Anaconda has a comparative advantage in the production of corn.
C)Bear achieves production efficiency only at its production point A.
D)Anaconda achieves production efficiency only at its production point A.
E)Both answers A and B are correct.

When Drawing a Production Possibilities Frontier, Which of the Following

Multiple Choice

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