Net exports equal imports minus exports

How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape?

A) In the economy represented by a straight-line production possibilities curve, there is no opportunity cost. B) In the economy represented by a straight-line production possibilities curve, neither good is scarce. C) In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. D) In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced.

In Table 17.4, the United States has 

A. an absolute and comparative advantage in lumber. B. an absolute and comparative advantage in both goods. C. an absolute advantage but not a comparative advantage in cars. D. an absolute advantage but not a comparative advantage in lumber.