[单选题]
The above diagrams show the production possibility frontiers (PPFs) of Country A and Country B. Both countries use the same amount of resources to produce CDs and wine.
Which of the following statements are true?
A. Country A has a comparative advantage in the production of both goods.
B. Country B has a comparative advantage in the production of both goods
C. Country A has a comparative advantage in wine, and Country B has a comparative advantage in CDs.
D. Country A has a comparative advantage in CDs, and Country B has a comparative advantage in wine.
参考答案:
C
本题详细解析:
C
Key idea:
A country has a comparative advantage in the production of a good if it produces that good at a lower opportunity cost (OC) than another country. It means it has to sacrifice fewer units of the other commodity than the other country.
Explanation:
OC = Goods obtainedGoods sacrificed
OC of wine in country A= 5050 =1
OC of wine in country B =1530 = 2
OC of CDs in country A =5050 =1
OC of CDs in country B =3015 =0.5
As country A has a lower OC in the production of wine it has a comparative advantage in the production of wine. Similarly, country