-Refer to the Above Diagrams

question 109

Multiple Choice

-Refer to the above diagrams.The solid lines are production possibilities curves;the dashed lines are trading possibilities curves.The data suggest that:

• A) West Lothian should specialize in,and export,beer.
• B) both countries will be better off if they do not engage in specialization and trade involving these two products.
• C) West Lothian should specialize in,and export,pizza.
• D) East Lothian should specialize in,and export,beer.

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