INEN Suppose there are two countries, A and B, that produce cars and bananas according to...

 

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INEN Suppose there are two countries, A and B, that produce cars and bananas according to the PPFs below. bananas 40 A's PPF 20 C. d. cars bananas 10 5 B's PPF cars 14. Who has an absolute advantage in cars? Who has an absolute advantage in bananas? a. A; B b. A; A C. B; A d. B; B 15. Who has a comparative advantage in cars? Who has a comparative advantage in bananas? a. A; B b. A; A B; A B; B INEN Suppose there are two countries, A and B, that produce cars and bananas according to the PPFs below. bananas 40 A's PPF 20 C. d. cars bananas 10 5 B's PPF cars 14. Who has an absolute advantage in cars? Who has an absolute advantage in bananas? a. A; B b. A; A C. B; A d. B; B 15. Who has a comparative advantage in cars? Who has a comparative advantage in bananas? a. A; B b. A; A B; A B; B

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To determine who has an absolute advantage in cars and bananas we need to compare the PPFs of the tw... View the full answer