Figure 2.2. Canadian Trade Possibilities

-Consider Figure 2.2.In the absence of trade, Canada would produce and consume
A) 8 televisions and 16 refrigerators.
B) 12 televisions and 16 refrigerators.
C) 8 televisions and 12 refrigerators.
D) 12 televisions and 8 refrigerators.

Question

Figure 2.2. Canadian Trade Possibilities
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-Consider Figure 2.2.In the absence of trade, Canada would produce and consume
A) 8 televisions and 16 refrigerators. 
B) 12 televisions and 16 refrigerators. 
C) 8 televisions and 12 refrigerators. 
D) 12 televisions and 8 refrigerators.

Quizplus · Accepted Answer

In the absence of trade, Canada would produce and consume at a point on its production possibilities frontier (PPF) that reflects its opportunity costs and resource allocation. The combination of 8 televisions and 12 refrigerators is likely a point on Canada's PPF, representing a feasible production and consumption choice without trade.