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    Microeconomics Study Set 51
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    Exam 2: Production Possibilities Frontier Framework
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    Exhibit 2-9 Refer to Exhibit 2-9
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Exhibit 2-9 Refer to Exhibit 2-9

Question 85

Question 85

Multiple Choice

Exhibit 2-9 Exhibit 2-9   Refer to Exhibit 2-9. If Alex and Adam each specialize in the good in which he has a comparative advantage and then engage in trade, ____________________ can consume a combination of goods that lies beyond their PPF. A) Alex, but not Adam, B) Adam, but not Alex C) Alex and Adam D) neither Alex nor Adam Refer to Exhibit 2-9. If Alex and Adam each specialize in the good in which he has a comparative advantage and then engage in trade, ____________________ can consume a combination of goods that lies beyond their PPF.


A) Alex, but not Adam,
B) Adam, but not Alex
C) Alex and Adam
D) neither Alex nor Adam

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