(Figure: Corn and Watches in the United States and Canada) Referring to the graphs, we see that the United States should export _____ to Canada and import _____ from Canada.

Question

Quizplus · Accepted Answer

The graph on the left shows that Canada produces more corn than it consumes, indicated by the positive quantity of 60 million bushels. This excess supply suggests that Canada is a net exporter of corn. The graph on the right shows that the United States produces more watches than it consumes, indicated by the positive quantity of 30 million watches. This excess supply suggests that the United States is a net exporter of watches. Therefore, the United States should export watches to Canada and import corn from Canada.