If Canada has an absolute advantage in the production of oil relative to the United States,then we know that
A) Canada also has a comparative advantage in producing oil.
B) Canada also has a comparative advantage in producing some good other than oil.
C) the opportunity cost of producing oil is higher in Canada than in the United States.
D) the opportunity cost of producing oil is lower in Canada than in the United States.
E) Canada may or may not have a comparative advantage in producing oil relative to the United States.
Correct Answer:
Verified
Q13: If two nations want to trade with
Q14: The increases in a nation's output and
Q15: Suppose Canada could produce all goods and
Q16: Suppose Spain is currently producing 90 units
Q17: If a country has a comparative advantage
Q19: The existence of any "gains from trade"
Q20: If a country is not engaged in
Q21: If two countries each produce wool and
Q22: Consider the possibility of trade between countries.When
Q23: If Country A has a comparative advantage
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents