The Production Possibilities Curves Illustrated in Figure 35

question 124

Multiple Choice

The production possibilities curves illustrated in Figure 35.2 reveal that

• A)The United States has no comparative advantage.
• B)The United States has an absolute advantage in both goods.
• C)Mexico has no comparative advantage.
• D)Mexico has a comparative advantage in baseballs.

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Definitions:

Invested

The act of allocating money or resources to an endeavor with the expectation of generating income or profit.

Bank

A financial institution licensed to accept deposits, offer loans, and provide other financial services such as currency exchange.

Population Size

The total number of individuals or inhabitants in a specified area or group.

Emigration

Or out-migration, is the outflow of people from one country and their settlement in one or more other countries.