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Refer to the Figure Shown,which Represents the Production Possibilities Frontiers

Question 45

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 curve,it is clear that: A) Country A should specialize in cars and Country B should specialize in trucks,and both could benefit from trade. B) Country A should specialize in trucks and 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 curve,it is clear that:


A) Country A should specialize in cars and Country B should specialize in trucks,and both could benefit from trade.
B) Country A should specialize in trucks and 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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