Advanced Placement (AP), 25.06.2021 18:00 quise2ross
Use the graphs of production possibilities below to answer the question that follows.
Two PPC graphs show bread (millions of tons) on the vertical axis and pies (millions) on the horizontal axis. Twistia’s PPC meets the vertical axis at the quantity 100 and the horizontal axis at the quantity 20. Turnland’s PPC meets the vertical axis at the quantity 50 and the horizontal axis at the quantity 40
Which of the following is a true statement about the data for Twistia and Turnland?
Both countries should specialize in bread, since each is more efficient in producing bread.
Twistia should specialize in pies and Turnland should specialize in bread.
The countries can benefit from trade if Twistia specializes in bread and trades for pies from Turnland.
Turnland can benefit from trade but not Twistia, since Twistia has absolute advantage in both goods.
Neither country can benefit from specialization and trade.
Answers: 2
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Use the graphs of production possibilities below to answer the question that follows.
Two PPC graph...
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