Use the production possibilities data below for Avokia and Baldonia to answer the following question(s).
Table 2-2

Refer to Table 2-2. According to the law of comparative advantage, both Avokia and Baldonia could gain if
A) Avokia produced all of the apples and oranges and Baldonia did not produce anything.
B) Avokia specialized in producing apples, Baldonia specialized in producing oranges, and they traded.
C) Avokia specialized in producing oranges, Baldonia specialized in producing apples, and they traded.
D) Baldonia and Avokia were both were self-sufficient and did not trade.

Question

Use the production possibilities data below for Avokia and Baldonia to answer the following question(s).
Table 2-2
 
Refer to Table 2-2. According to the law of comparative advantage, both Avokia and Baldonia could gain if
A) Avokia produced all of the apples and oranges and Baldonia did not produce anything. 
B) Avokia specialized in producing apples, Baldonia specialized in producing oranges, and they traded. 
C) Avokia specialized in producing oranges, Baldonia specialized in producing apples, and they traded. 
D) Baldonia and Avokia were both were self-sufficient and did not trade.

Quizplus · Accepted Answer

The Answer of Use the production possibilities data below for Avokia and Baldonia to answer the following question(s).
Table 2-2
 
Refer to Table 2-2. According to the law of comparative advantage, both Avokia and Baldonia could gain if
A) Avokia produced all of the apples and oranges and Baldonia did not produce anything. 
B) Avokia specialized in producing apples, Baldonia specialized in producing oranges, and they traded. 
C) Avokia specialized in producing oranges, Baldonia specialized in producing apples, and they traded. 
D) Baldonia and Avokia were both were self-sufficient and did not trade.

Use the Production Possibilities Data Below for Avokia and Baldonia