Use the following to answer question:
-(Table: Production Possibilities for the United States and Canada)Use Table: Production Possibilities for the United States and Canada.Both nations can produce cars and lumber.If these nations trade,Canada has the comparative advantage in _____ and should trade _____ to the United States in exchange for _____.

Question

Use the following to answer question: 
-(Table: Production Possibilities for the United States and Canada)Use Table: Production Possibilities for the United States and Canada.Both nations can produce cars and lumber.If these nations trade,Canada has the comparative advantage in _____ and should trade _____ to the United States in exchange for _____.

Quizplus · Accepted Answer

Canada has the comparative advantage in lumber production, meaning it can produce lumber at a lower opportunity cost compared to cars. Therefore, Canada should trade lumber to the United States in exchange for cars.

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