Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that

A. Mexico has a comparative advantage in the production of tomatoes.
B. The United States has a comparative advantage in the production of machinery.
C. There is no benefit to the United States as a result of trading tomatoes or machinery with Mexico.
D. Mexico does not have an absolute advantage in the production of either good.


Answer: D

Economics

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