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

Question 49

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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.We see from the table that Canada: A)  has an absolute advantage in the production of both goods and a comparative advantage in the production of commodity X. B)  has an absolute advantage in the production of both goods and a comparative advantage in the production of commodity Y. C)  does not have an absolute advantage in the production of either good, but it has a comparative advantage in the production of commodity X. D)  does not have an absolute advantage in the production of either good, but it has a comparative advantage in the production of commodity Y.
-(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.We see from the table that Canada:


A) has an absolute advantage in the production of both goods and a comparative advantage in the production of commodity X.
B) has an absolute advantage in the production of both goods and a comparative advantage in the production of commodity Y.
C) does not have an absolute advantage in the production of either good, but it has a comparative advantage in the production of commodity X.
D) does not have an absolute advantage in the production of either good, but it has a comparative advantage in the production of commodity Y.

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