Use the following to answer questions:
-(Table: The Production Possibilities for Tractors and Crude Oil)Use Table: The Production Possibilities for Tractors and Crude Oil.Both Canada and Mexico will gain from trade if one tractor trades for _____ barrels of oil.

Question

Use the following to answer questions: 
-(Table: The Production Possibilities for Tractors and Crude Oil)Use Table: The Production Possibilities for Tractors and Crude Oil.Both Canada and Mexico will gain from trade if one tractor trades for _____ barrels of oil.

Quizplus · Accepted Answer

Canada can produce 1 tractor or 1,500 barrels of oil. Mexico can produce 1 tractor or 4,500 barrels of oil. Therefore, if one tractor trades for 1,500 barrels of oil, both countries will gain from trade.

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