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Refer to the Figure Shown, Which Represents the Production Possibilities

Question 150

Multiple Choice

  Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country's production possibilities frontier, it is clear that: A)  Country A should specialize in cars, Country B should specialize in trucks, and both could benefit from trade. B)  Country A should specialize in trucks, Country B should specialize in cars, and both will benefit from trade. C)  Country A will not benefit from trade. D)  Country B will lose by trading with Country A. Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. After comparing each country's production possibilities frontier, it is clear that:


A) Country A should specialize in cars, Country B should specialize in trucks, and both could benefit from trade.
B) Country A should specialize in trucks, Country B should specialize in cars, and both will benefit from trade.
C) Country A will not benefit from trade.
D) Country B will lose by trading with Country A.

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