In the Accompanying Diagrams, Solid Lines Are Production Possibilities Curves

question 66

Multiple Choice

In the accompanying diagrams, solid lines are production possibilities curves, and the dashed lines are trading possibilities curves. The data suggest that

• A)West Lothian should specialize in, and export, beer.
• B)both countries will be better off if they do not engage in specialization and trade involving these two products.
• C)West Lothian should specialize in, and export, pizza.
• D)East Lothian should specialize in, and export, beer.