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Refer to the Figure Shown, Which Represents the Production Possibilities

Question 55

Multiple Choice

  Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Assuming both countries have the same amount of resources available to them, which of the following statements is true? A)  Country A has an absolute advantage at producing cars, and Country B has an absolute advantage at producing trucks. B)  Country A has an absolute advantage at producing trucks and Country B has an absolute advantage at producing cars. C)  Country A has an absolute advantage at producing both cars and trucks. D)  Country B has an absolute advantage at producing both cars and trucks. Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Assuming both countries have the same amount of resources available to them, which of the following statements is true?


A) Country A has an absolute advantage at producing cars, and Country B has an absolute advantage at producing trucks.
B) Country A has an absolute advantage at producing trucks and Country B has an absolute advantage at producing cars.
C) Country A has an absolute advantage at producing both cars and trucks.
D) Country B has an absolute advantage at producing both cars and trucks.

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