Refer to the graph shown. The graph demonstrates Saudi Arabia's and the United States' production possibility curves for widgets and wadgets. Given these production possibility curves, you would suggest that:
A)Saudi Arabia specialize in widgets and the United States in wadgets.
B)No trade should take place.
C)Saudi Arabia specialize in wadgets and the United States in widgets.
D)Both countries should produce an equal amount of each.

Question

Refer to the graph shown.  The graph demonstrates Saudi Arabia's and the United States' production possibility curves for widgets and wadgets. Given these production possibility curves, you would suggest that:
A)Saudi Arabia specialize in widgets and the United States in wadgets. 
B)No trade should take place. 
C)Saudi Arabia specialize in wadgets and the United States in widgets. 
D)Both countries should produce an equal amount of each.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown.  The graph demonstrates Saudi Arabia's and the United States' production possibility curves for widgets and wadgets. Given these production possibility curves, you would suggest that:
A)Saudi Arabia specialize in widgets and the United States in wadgets. 
B)No trade should take place. 
C)Saudi Arabia specialize in wadgets and the United States in widgets. 
D)Both countries should produce an equal amount of each.

Refer to the Graph Shown