Figure 16-5 Quantities of Goods That Can Be Produced in One Day

question 114

Multiple Choice

Figure 16-5
Quantities of goods that can be produced in one day with available resources:

-In Figure 16-5,which of the following is true?

• A)Both countries can benefit from trade if Panama produces bicycles and Costa Rica produces rugs.
• B)Both countries can benefit from trade if Panama produces both rugs and bicycles.
• C)Both countries can benefit from trade if Panama produces rugs and Costa Rica produces bicycles.
• D)Both countries can benefit from trade if Costa Rica produces bicycles and rugs.
• E)Neither country can benefit from trade since Panama has an absolute advantage in producing both bicycles and rugs.

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