Use the Following to Answer Questions

question 19

Multiple Choice

Use the following to answer questions :
Figure 18-1
-Note that in Figure 18-1, the production possibilities frontier is closer to the origin for Europe than for the U.S.This is because:

• A)it is assumed that there are more people in the United States.
• B)it is assumed that Europe has lower output in both industries.
• C)it is assumed that the citizens of the United States are generally much better off than their European counterparts.
• D)it is assumed that there is more inefficiency in Europe.
• E)it is assumed that American labor is less productive than European labor.

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