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Use the Following to Answer Question(s): Production Possibilities Schedule for Two

Question 48

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Use the following to answer question(s) : Production Possibilities Schedule for Two Commodities
Use the following to answer question(s) : Production Possibilities Schedule for Two Commodities    -(Exhibit: Production Possibilities Schedule for Two Commodities)  Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of commodity X each country would have to forgo to produce the additional units of commodity Y indicated.Further assume that the only input is labor and that it remains fully employed.If there is no trade between the United States and Canada, the costs of X and Y are such that: A)  X is cheaper than Y in both the United States and Canada. B)  Y is cheaper in the United States and X is cheaper in Canada. C)  X costs the same amount as Y in the United States. D)  X costs the same amount as Y in Canada.
-(Exhibit: Production Possibilities Schedule for Two Commodities) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of commodity X each country would have to forgo to produce the additional units of commodity Y indicated.Further assume that the only input is labor and that it remains fully employed.If there is no trade between the United States and Canada, the costs of X and Y are such that:


A) X is cheaper than Y in both the United States and Canada.
B) Y is cheaper in the United States and X is cheaper in Canada.
C) X costs the same amount as Y in the United States.
D) X costs the same amount as Y in Canada.

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