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Why Doesn't Canada Grow Its Own Bananas

Question 16

Multiple Choice

Why doesn't Canada grow its own bananas?


A) It is not possible to grow bananas in Canada.
B) Canada's factor endowments suggest that it can better produce many other goods besides bananas.
C) It is cheaper to buy bananas from countries that have different factor endowments which are much better suited to growing bananas.
D) Both b) and c) .

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