The production possibilities curves illustrated in Figure 35.2 reveal that
A. The United States has no comparative advantage.
B. The United States has an absolute advantage in both goods.
C. Mexico has a comparative advantage in baseballs.
D. Mexico has no comparative advantage.
Answer: B
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If the price of orange juice rises, the demand for grapefruit juice will
a. increase because the two goods are substitutes b. increase because it is a complement c. decrease because the two goods are substitutes d. decrease because the two goods are complements e. not change unless the price of grapefruit juice also changes
Which of the following led to the collapse of the Phillips curve?
A. Rightward shift in the demand for labor curve B. Leftward shift of the Phillips curve C. Leftward shift of the aggregate supply curve D. Rightward shift of the aggregate demand curve