Multiple Choice
Figure 3-5 The graph below represents the various combinations of cars and corn that Country A could produce in a given month. (On the vertical axis, corn is measured in bushels.)
-Refer to Figure 3-5.Under which of the following circumstances would Country A be able to consume outside of its production possibilities frontier?
A) Under no circumstances is that possible.
B) Country A trades with Country B; Country A has a comparative advantage over Country B in producing corn; and Country A specializes in car production.
C) Country A trades with Country B; Country A has a comparative advantage over Country B in producing cars; and Country A specializes in car production.
D) Country A trades with Country B; Country A has an absolute advantage over Country B in producing cars; and Country A specializes in car production.
Correct Answer:
Verified
Correct Answer:
Verified
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