Table 3-4

-Refer to the table.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 the table.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

Alberta has a comparative advantage in producing baskets, while Manitoba has a comparative advantage in producing birdhouses. Therefore, Alberta will export baskets, and Manitoba will export birdhouses.

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