-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are

question 19

Multiple Choice

-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.They can each produce any linear combination as well.If production occurs at the kink on the joint production possibility frontier,

• A) the U.S. will specialize in food and Canada will specialize in clothing.
• B) the U.S. will specialize in clothing and Canada will specialize in food.
• C) each country will devote half of its resources to each industry.
• D) joint output is minimized.

---

Definitions:

Organization

An entity composed of multiple people working together towards common goals or objectives, structured to coordinate their activities.

Differentiation

A strategy or process of distinguishing a product, service, or brand from others in the market to create a competitive advantage or appeal to a specific target audience.

Complexity

The degree to which a system or process has multiple components that are interconnected and which require careful consideration or analysis.

Labor

The physical and mental effort exerted by individuals in the production of goods and services.