Multiple Choice
(Figure: Ships and Autos in Countries A and B) Two countries manufacture autos and ships. Based on the graphs
A) Country A should specialize in automotive manufacturing and country B should specialize in ship building.
B) There are no advantages to trade because country A can produce more of both goods.
C) There are no advantages to trade because the lines are downward sloping.
D) Country A should specialize in ship building and country B should specialize in automotive manufacturing.
Correct Answer:

Verified
Correct Answer:
Verified
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