If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this pattern of trade?
A) Mexico has a lower opportunity cost of producing bacon than Canada and Mexico has a comparative advantage in producing fishing poles.
B) The opportunity cost of producing fishing poles in Canada is higher than the opportunity cost of producing bacon in Mexico.
C) Mexico must have an absolute advantage in producing fishing poles and Canada must have an absolute advantage in bacon.
D) Mexico has a higher opportunity cost of producing fishing poles than Canada, and Canada has a higher opportunity cost of producing bacon.
Correct Answer:
Verified
Q44: The ability of a firm or country
Q48: Table 9-4
Output Per Hour of Work
Q53: Table 9-5 Q58: If Japanese workers are more productive than Q59: If a country has an absolute advantage Q63: Table 9-6 Q64: Assume that China has a comparative advantage Q64: Table 9-6 Q71: Table 9-6 Q79: Table 9-6
Output per hour Production and Production
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Output per hour Production and Production
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Output per hour Production and Production
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Output per hour Production and Production
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