The Graph Below Shows the Production Possibility Curves for Two

question 70

Multiple Choice

The graph below shows the production possibility curves for two hypothetical nations, Orin and Pohl, which each make two hypothetical products, jaxs and keps. Which of the following statements is correct?

• A) Orin has a comparative advantage in both jaxs and keps.
• B) Pohl has a comparative advantage in jaxs.
• C) The opportunity cost of making jaxs is lower in Orin than in Pohl.
• D) Orin is more efficient than Pohl.

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Definitions:

Early-bird Parking

Discounted or reserved parking spaces offered to individuals who arrive at a location or event early.

Toll Road

a public or private roadway for which a fee is assessed for passage.

Economic Principle

A widely accepted theory or law that underpins the analysis of economic behaviors and decision-making.

Extra Money

Additional funds or income that surpasses one's regular or expected amount, possibly available for discretionary spending or saving.