Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements can be said of Country A? Country A:
A. has the comparative advantage in car and truck production.
B. does not possess the comparative advantage in either good.
C. has the comparative advantage in truck production only.
D. has the comparative advantage in car production only.
Answer: D
You might also like to view...
What is the domestic price of sugar in a closed economy? 
A. $3,000/ton B. $1,000/ton C. $2,000/ton D. $500/ ton
The graph shows the labor market for teenagers in Atlanta. If the government sets a minimum wage of $6 an hour, the number of teenagers employed is ________
A) 7,000 B) 5,000 C) 4,000 D) 3,000 E) less than 3,000
Which of the following macroeconomic variables does not vary much over the seasons?
A) The nominal money stock B) The unemployment rate C) The real wage D) Average labor productivity
Which of the following helps economists avoid double counting in computing of GDP?
a. Including goods and services produced only within a given area. b. Only include transfer payments made by the government and not individuals. c. Only include capital purchases by corporations and not by family-owned firms. d. Avoiding the use of intermediate goods in calculating GDP.