The opportunity cost of producing a pair of pants in Canada is 5 kilograms of wheat,while in China it is 2 kilograms of wheat.What is the result?
A) There can be mutual gains from trade to the two countries if Canada exports pants to China in exchange for wheat.
B) China has a comparative advantage over Canada in the production of wheat.
C) Canada has a comparative advantage over China in the production of pants.
D) There can be mutual gains from trade to the two countries if Canada exports wheat to China in exchange for pants.
Correct Answer:
Verified
Q25: In Bangladesh,one person can produce 330 pounds
Q26: If Samoa could produce either 3 coconuts
Q27: Table 14-1
Alternate Outputs from One Day's Labour
Q28: In Samoa,the opportunity cost of producing 1
Q29: In Artland,the opportunity cost of producing 1
Q31: Table 14-1
Alternate Outputs from One Day's Labour
Q32: If two countries are each producing two
Q33: Table 14-2
Alpha can produce either 18 oranges
Q34: Suppose that Canada can produce 100 hockey
Q35: Table 14-2
Alpha can produce either 18 oranges
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