AP Microeconomics Unit 1 Practice Test

Access More Questions

The above diagram represents the production possibilities of Country A and Country B, with the use of the same resources. Which of the following would be true for both Country A and Country B?

Country A has a comparative advantage in DVD players and Country B has a comparative advantage in TVs. a straight diagonal line sloping downward from left to right. all natural resources. The production possibilities frontier is concave to the origin because of the law of increasing costs.

Correct Answer:

Country A has a comparative advantage in DVD players and Country B has a comparative advantage in TVs.

Explanation:

Correct answer: Country A has a comparative advantage in DVD players and Country B has a comparative advantage in TVs.

Access more questions from this quiz

Continue to AP Microeconomics Unit 1 Practice Test for more practice questions and the full quiz experience.

Access More Questions