The Following Diagrams Show the Production Possibilities Boundaries for Austria

question 82

Multiple Choice

The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2 Refer to Figure 32-2.The diagrams illustrate that Switzerland

• A)has an absolute advantage in the production of bicycles.
• B)has a comparative advantage in the production of shoes.
• C)has an absolute advantage in the production of shoes.
• D)has a higher consumption of bicycles than Austria.
• E)has a comparative advantage in the production of bicycles.

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