Multiple Choice
The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2
-Refer to Figure 32-2.The diagrams illustrate that Switzerland
A) has an absolute advantage in the production of bicycles.
B) has a comparative advantage in the production of shoes.
C) has an absolute advantage in the production of shoes.
D) has a higher consumption of bicycles than Austria.
E) has a comparative advantage in the production of bicycles.
Correct Answer:

Verified
Correct Answer:
Verified
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