The Graph Shows the Production Possibilities Curves for Two Hypothetical

question 234

Multiple Choice

The graph shows the production possibilities curves for two hypothetical nations, Orin and Pohl, which each make two hypothetical products, jaxs and keps. Which of the following statements is correct?

• A)Orin has a comparative advantage in both jaxs and keps.
• B)Pohl has a comparative advantage in jaxs.
• C)The opportunity cost of making jaxs is lower in Orin than in Pohl.
• D)Orin is more efficient than Pohl.

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