If Canada can produce 500 TV sets at the cost of 10 cars,while Mexico can produce 1,000 TV sets at the cost of 8 cars,we know the following:
A) Canada has a comparative advantage in TV production.
B) Mexico has the absolute advantage in TV production.
C) The two countries' joint output equals 1,500 TV sets and 18 cars without trade,but it will be higher after proper specialization and trade.
D) Canada has a comparative advantage in car production.
E) Canada produces more cars than Mexico does.
Correct Answer:
Verified
Q35: Figure 16-2
Number of workers needed to produce
Q36: Consider the following table on labor hours
Q37: Consider the following information on labor hours
Q38: Comparative advantage is determined by the
A)elasticities of
Q39: In a Mexican factory,each worker can produce
Q41: The terms of trade
A)equal the ratio of
Q42: If countries begin to specialize according to
Q43: Figure 16-4
Number of workers needed to produce
Q44: If 50 units of resources can produce
Q45: The limits of the terms of trade
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