Multiple Choice
Use the figure below to answer the following questions.
Table 2.4.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers.
-Refer to Table 2.4.1. Which one of the following is true?
A) Romulus has both an absolute advantage and a comparative advantage in the production of Y.
B) Romulus has both an absolute advantage and a comparative advantage in the production of X.
C) Vulcan has a comparative advantage in the production of X.
D) Romulus has a comparative advantage in the production of X.
E) Vulcan should specialize in the production of X.
Correct Answer:

Verified
Correct Answer:
Verified
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