If the United States has a comparative advantage over Canada in the production of computers and Canada has a comparative advantage over the United States in the production of cars, then
A) the United States should specialize in the production of cars and trade some cars to Canada for computers.
B) the United States should specialize in the production of computers and trade some computers to Canada for cars.
C) Canada should not trade its cars.
D) neither country can benefit from trade with each other.
Correct Answer:
Verified
Q92: If the United States were to cut
Q93: With no trade, the equilibrium price of
Q94: When the world market price of a
Q95: A quota is a limit on how
Q96: All of these are arguments against free
Q98: An infant industry is one that is
Q99: Which statement does NOT describe the limitations
Q100: If countries move from highly restricted trade
Q101: Imports include only goods, not services.
Q102: Both countries can gain from trade when
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