True or false By comparing the production possibility curves

True or false? By comparing the production possibility curves of two individuals for the same two goods, it is completely impossible to determine who has the comparative advantage in which good.

Solution

False.

Slope of a PPF reveals the opportunity cost. The steeper a PPF, the higher the opportunity cost (relative price) between two goods. So, the flatter PPF reveals a lower opportunity cost, which indicates that country has comparative advantage in which good.