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

Question 139

Multiple Choice

  Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.After examining each country's production possibilities curve,it is clear that: A) neither country will benefit from trade. B) both countries can benefit from trade because absolute advantage exists. C) both countries could benefit from trade because comparative advantage exists. D) only Country A will benefit from trade. Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.After examining each country's production possibilities curve,it is clear that:


A) neither country will benefit from trade.
B) both countries can benefit from trade because absolute advantage exists.
C) both countries could benefit from trade because comparative advantage exists.
D) only Country A will benefit from trade.

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