Which of the following is true based on the graph below? * Refer to the graph below to answer questions 1-6 below. Quantity of wheat (bushels) 200 Country A's PPC 100 Country B's PPC 100 150 Quantity of textiles (units) Country A has a constant opportunity cost of making textiles Country B has an increasing opportunity cost of making bushel. Country B has absolute advantage in wheat; Country A has absolute advantage in textiles. Country B has absolute advantage in both wheat and textiles. Country A has absolute advantage in wheat; neither country has absolute advantage in textiles.
Which of the following is true based on the graph below? * Refer to the graph below to answer questions 1-6 below. Quantity of wheat (bushels) 200 Country A's PPC 100 Country B's PPC 100 150 Quantity of textiles (units) Country A has a constant opportunity cost of making textiles Country B has an increasing opportunity cost of making bushel. Country B has absolute advantage in wheat; Country A has absolute advantage in textiles. Country B has absolute advantage in both wheat and textiles. Country A has absolute advantage in wheat; neither country has absolute advantage in textiles.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Which of the following is true based on the graph below? *
Refer to the graph below to answer questions 1-6 below.
Quantity of
wheat (bushels)
200
Country A's PPC
100
Country B's PPC
100
150
Quantity of textiles (units)
Country A has a constant opportunity cost of making textiles
Country B has an increasing opportunity cost of making bushel.
Country B has absolute advantage in wheat; Country A has absolute advantage in
textiles.
Country B has absolute advantage in both wheat and textiles.
Country A has absolute advantage in wheat; neither country has absolute advantage
in textiles.
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