Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A) The United States has a comparative advantage in the production of machinery.
B) Mexico has an absolute advantage in the production of machinery.
C) The United States has an absolute advantage in the production of both goods.
D) The United States does not have an absolute advantage in the production of either good.

Question

Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A) The United States has a comparative advantage in the production of machinery. 
B) Mexico has an absolute advantage in the production of machinery. 
C) The United States has an absolute advantage in the production of both goods. 
D) The United States does not have an absolute advantage in the production of either good.

Quizplus · Accepted Answer

The Answer of  Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A) The United States has a comparative advantage in the production of machinery. 
B) Mexico has an absolute advantage in the production of machinery. 
C) The United States has an absolute advantage in the production of both goods. 
D) The United States does not have an absolute advantage in the production of either good.