Assume that Economy A and Economy B have the same resources, but that individuals in Economy A have specialized whereas individuals in Economy B have not. Given this information, you can determine that

A) Economy A will have a higher output than Economy B.
B) Economy A will have a lower output than Economy B.
C) Economy A and Economy B will have identical outputs.
D) individuals in Economy A will have lower incomes than individuals in Economy B.

A

Economics

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"Everybody has a comparative advantage in something." Do you agree or disagree? Why?

What will be an ideal response?

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Which point or output-combination in the graph below could the nation produce only if it experienced economic growth?



A. Combination F
B. Combination G
C. Combination C
D. Combination E

Economics