Use the following to answer questions :
-(Table: Production Possibilities for the United States and Canada) Look at the table Production Possibilities for the United States and Canada. Both nations can produce cars and lumber. If these nations were to specialize and trade, the United States would export 1 million cars to Canada in exchange for _____ million board feet of lumber.

Question

Use the following to answer questions : 
-(Table: Production Possibilities for the United States and Canada) Look at the table Production Possibilities for the United States and Canada. Both nations can produce cars and lumber. If these nations were to specialize and trade, the United States would export 1 million cars to Canada in exchange for _____ million board feet of lumber.

Quizplus · Accepted Answer

The United States can produce 10 million cars or 20 million board feet of lumber. Canada can produce 5 million cars or 10 million board feet of lumber. If the United States specializes in producing cars and Canada specializes in producing lumber, the United States can produce 10 million cars and Canada can produce 10 million board feet of lumber. The United States can then export 1 million cars to Canada in exchange for 2 million board feet of lumber.

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