(Table: Production Possibilities for the United States and Canada) Look at the table Production Possibilities for the United States and Canada.Both nations can produce cars and lumber.If these nations were to trade, which of the following is true?
A.Canada has the comparative advantage in cars and should trade cars to the United States in exchange for lumber.
B.Canada has the comparative advantage in lumber and should trade lumber to the United States in exchange for cars.
C.Canada has the comparative advantage in lumber and should trade cars to the United States in exchange for lumber.
D.Canada has the comparative advantage in cars and should trade lumber to the United States in exchange for cars.

Question

(Table: Production Possibilities for the United States and Canada) Look at the table Production Possibilities for the United States and Canada.Both nations can produce cars and lumber.If these nations were to trade, which of the following is true? 
A.Canada has the comparative advantage in cars and should trade cars to the United States in exchange for lumber.
B.Canada has the comparative advantage in lumber and should trade lumber to the United States in exchange for cars.
C.Canada has the comparative advantage in lumber and should trade cars to the United States in exchange for lumber.
D.Canada has the comparative advantage in cars and should trade lumber to the United States in exchange for cars.

Quizplus · Accepted Answer

The Answer of   (Table: Production Possibilities for the United States and Canada) Look at the table Production Possibilities for the United States and Canada.Both nations can produce cars and lumber.If these nations were to trade, which of the following is true? 
A.Canada has the comparative advantage in cars and should trade cars to the United States in exchange for lumber.
B.Canada has the comparative advantage in lumber and should trade lumber to the United States in exchange for cars.
C.Canada has the comparative advantage in lumber and should trade cars to the United States in exchange for lumber.
D.Canada has the comparative advantage in cars and should trade lumber to the United States in exchange for cars.