Table 3-4

-Refer to Table 3-4. If Alberta and Manitoba trade based on the principle of comparative advantage, what will be exported?
A)Alberta will export baskets and Manitoba will export birdhouses.
B)Alberta will export birdhouses and Manitoba will export baskets.
C)Alberta will export neither good and Manitoba will export both goods.
D)Alberta will export both goods and Manitoba will export neither good.

Question

Table 3-4
 
-Refer to Table 3-4. If Alberta and Manitoba trade based on the principle of comparative advantage, what will be exported?
A)Alberta will export baskets and Manitoba will export birdhouses. 
B)Alberta will export birdhouses and Manitoba will export baskets. 
C)Alberta will export neither good and Manitoba will export both goods. 
D)Alberta will export both goods and Manitoba will export neither good.

Quizplus · Accepted Answer

The principle of comparative advantage suggests that each region should specialize in the production of the good for which it has a lower opportunity cost. Alberta will export birdhouses if it has a comparative advantage in producing them, while Manitoba will export baskets if it has a comparative advantage in producing them.

Table 3-4 -Refer to Table 3-4. If Alberta and Manitoba Trade Based