The following production possibilities schedule shows the quantities of wheat and rice that can each be produced in Canada and India with one unit of equivalent resources. TABLE 32-2 Refer to Table 32-2.Canada has a comparative advantage in the production of ________.India has a comparative advantage in the production of ________.

Question

The following production possibilities schedule shows the quantities of wheat and rice that can each be produced in Canada and India with one unit of equivalent resources.  TABLE 32-2 Refer to Table 32-2.Canada has a comparative advantage in the production of ________.India has a comparative advantage in the production of ________.

Quizplus · Accepted Answer

Canada has a lower opportunity cost for producing wheat (1/2 rice) compared to India (1 rice) and India has a lower opportunity cost for producing rice (1/2 wheat) compared to Canada (1 wheat). Therefore, Canada has a comparative advantage in producing wheat and India has a comparative advantage in producing rice.

The Following Production Possibilities Schedule Shows the Quantities of Wheat