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The Following Production Possibilities Schedule Shows the Quantities of Wheat

Question 35

Multiple Choice

The following production possibilities schedule shows the quantities of wheat and rice that can be produced in Canada and India with one unit of equivalent resources.  Wheat  (bushels)   Rioe  (bushels)   Canada 135 India 613 TABLE 33- 2\begin{array}{l}\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Wheat } \\\text { (bushels) }\end{array} & \begin{array} { l } \text { Rioe } \\\text { (bushels) }\end{array} \\\hline \text { Canada } & 13 & 5 \\\hline \text { India } & 6 & 13 \\\hline\end{array}\\\text { TABLE 33- } 2\end{array}
-Refer to Table 33- 2. To achieve the potential gains from international trade,


A) India should export rice to Canada and import Canadian wheat.
B) India should exclude wheat from its consumption.
C) Canada should produce both wheat and rice and not trade with India.
D) India should export wheat to Canada and import Canadian rice.
E) India should produce both wheat and rice and not trade with Canada.

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