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.
Correct Answer:

Verified
Correct Answer:
Verified
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