Use the Following to Answer Question(s): Production Possibilities in Alphaland

Use the following to answer question(s) : Production Possibilities in Alphaland and Omegaland

-(Exhibit: Production Possibilities in Alphaland and Omegaland) Which of the following statements is true?

A) Alphaland has an absolute advantage in the production of computers.
B) Omegaland has an absolute advantage in the production of cars.
C) A nation that can produce all goods with an absolute advantage would not benefit from trade.
D) Because absolute advantage is determined by the amount of output per worker, it is not possible to determine if either country has an absolute advantage without more information.

Correct Answer:

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