Table 16.1 Production Possibilities Tables for Germany and Canada
Germany's Production Possibilities Table
Canada's Production Possibilities Table

-Refer to Table 16.1. According to the principle of comparative advantage,

Question

Table 16.1 Production Possibilities Tables for Germany and Canada
Germany's Production Possibilities Table
  Canada's Production Possibilities Table
 
-Refer to Table 16.1. According to the principle of comparative advantage,

Quizplus · Accepted Answer

The principle of comparative advantage suggests that each country should specialize in and export the good for which it has a lower opportunity cost. Without seeing Table 16.1, the correct answer is based on the principle that if Germany has a lower opportunity cost in producing steel and Canada in producing autos, then Germany should export steel and Canada should export autos.

Table 161 Production Possibilities Tables for Germany and Canada