Reference: Ref 2-9 (Figure: Countries a & B) Refer to the Figure

question 35

Multiple Choice

Reference: Ref 2-9 (Figure: Countries A & B) Refer to the figure. According to the diagram about countries A & B, which of the following statements is correct? I. Country A has a comparative advantage in Good Y. II. Country B has an absolute advantage in both goods. III. Country B has a comparative advantage in Good X.

• A) I and II only
• B) I and III only
• C) II and III only
• D) I, II, and III