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Moderate

Opportunity Cost and PPF

APMACR-ENVABK

Assume two countries, United States and Canada, produce only two goods.

If the production possibilities curves for both countries is curved outward away from the axis, then this means

A

both countries are experiencing constant opportunity costs.

B

both countries experience different mixes of resources and technological advances.

C

neither country will have an absolute advantage in the production on a good.

D

the United States will have a comparative advantage because the population is greater.

E

Canada will have a comparative advantage in the production of land-intensive goods.