If the Production Possibilities Curves of Two Countries Have the Same

question 55

Multiple Choice

If the production possibilities curves of two countries have the same slope,

• A)neither has a comparative advantage, and there are no gains from trade.
• B)although there is no comparative advantage, there are potential gains if there are differences in absolute advantage.
• C)neither has an absolute advantage, and there cannot be gains from trade.
• D)both have an absolute advantage and can gain from trade.

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Definitions:

American Policy

Refers to the set of laws, regulations, and guidelines adopted by the government of the United States to govern domestic and foreign affairs.

Philippines

A Southeast Asian country in the Western Pacific, comprising more than 7,000 islands, known for its waterfront promenade, colonial architecture, and diverse culture and history.

1898

Marked significant events such as the Spanish-American War, leading to the U.S. acquiring territories like Puerto Rico, Guam, and the Philippines.

1916

A year marked by significant global events, including World War I battles and the Easter Rising in Ireland.