The Following Diagrams Show the Production Possibilities Boundaries for Austria

question 24

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.Assume that Austria and Switzerland do not engage in international trade.In that case,

• A)Austria will produce all shoes and no bicycles.
• B)Switzerland will produce all bicycles and no shoes.
• C)each country will consume according to comparative advantage anyway.
• D)the downward-sloping lines illustrate each country's consumption possibilities.
• E)each country will produce according to comparative advantage anyway.