Figure 9-8.On the diagram below,Q represents the quantity of cars and P represents the price of cars.
-Refer to Figure 9-8.The country for which the figure is drawn
A)has a comparative advantage relative to other countries in the production of cars and it will export cars.
B)has a comparative advantage relative to other countries in the production of cars and it will import cars.
C)has a comparative disadvantage relative to other countries in the production of cars and it will export cars.
D)has a comparative disadvantage relative to other countries in the production of cars and it will import cars.

Question

Figure 9-8.On the diagram below,Q represents the quantity of cars and P represents the price of cars. 
-Refer to Figure 9-8.The country for which the figure is drawn
A)has a comparative advantage relative to other countries in the production of cars and it will export cars. 
B)has a comparative advantage relative to other countries in the production of cars and it will import cars. 
C)has a comparative disadvantage relative to other countries in the production of cars and it will export cars. 
D)has a comparative disadvantage relative to other countries in the production of cars and it will import cars.

Quizplus · Accepted Answer

The slope of the PPF is negative, indicating that there is an opportunity cost to producing more cars. This suggests that the country does not have a comparative advantage in car production. Additionally, the equilibrium price and quantity occur at a relatively low price and high quantity, indicating that the country is likely importing cars. Therefore, choice D is the correct answer.