Assume Australia Can Use a Given Amount of Its Resources

question 24

Multiple Choice

Assume Australia can use a given amount of its resources to produce either 20 airplanes or eight automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. Australia should specialise in:

• A) airplanes.
• B) automobiles.
• C) both goods.
• D) neither good.