-The Table Above Gives the Production Possibilities Frontier for Two

question 283

Multiple Choice

-The table above gives the production possibilities frontier for two countries,Anaconda and Bear.This table shows that

• A) when Anaconda and Bear specialize and trade, Anaconda should specialize in the production of shoes.
• B) when Anaconda and Bear specialize and trade, Anaconda should produce at its production point E.
• C) Anaconda has an absolute advantage in the production of corn and shoes.
• D) Bear can consume no more than 2 bushels of corn and 700 pairs of shoes.
• E) Bear is unable to gain from trade with Anaconda.

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