Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day.On the other hand,a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day.Canada has the ____________ opportunity cost of a pair of shoes than the United States,so: ____________.

Question

Quizplus · Accepted Answer

Canada has a lower opportunity cost of producing a pair of shoes than the United States (1/10 pairs of shoes for Canada vs. 1/20 pairs of shoes for the United States). Therefore, Canada should specialize in producing shoes and trade with the United States for apples. This way, both countries can maximize their production and benefits from the trade.

Suppose an American Worker Can Make 20 Pairs of Shoes