Use the Following to Answer Questions

question 157

Multiple Choice

Use the following to answer questions
Figure: Ships and Autos in Countries A and B
-(Figure: Ships and Autos in Countries A and B) Two countries manufacture automobiles and ships.Based on the graphs,which statement is correct?

• A) Country A has a comparative disadvantage in producing ships.
• B) The two countries should not trade with each other because they can produce both goods.
• C) Country B has an absolute advantage in both goods because the line is closer to the origin.
• D) Country A has an absolute advantage in producing ships.