The Following Figure Shows the Production Possibilities Curves (PPCs) of Two

question 136

Multiple Choice

The following figure shows the production possibilities curves (PPCs) of two individuals, Ryan and Tom.

-Refer to the figure above.Which of the following statements is true?

• A) Ryan's opportunity cost of producing Good 1 is higher than that of Tom, whereas Tom's opportunity cost of producing Good 2 is higher than that of Ryan.
• B) Ryan's opportunity cost of producing Good 2 is higher than Tom's opportunity cost of producing it.
• C) Ryan has a comparative disadvantage in the production of both goods.
• D) Tom has a comparative disadvantage in the production of both goods.

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