Figure 2.2 illustrates trade data for Canada.The figure assumes that Canada attains international trade equilibrium at point C.
Figure 2.2.Canadian Trade Possibilities

-Referring to Figure 2.2,Canada has a comparative advantage in:
A) Televisions
B) Refrigerators
C) Televisions and refrigerators
D) Neither televisions nor refrigerators

Question

Figure 2.2 illustrates trade data for Canada.The figure assumes that Canada attains international trade equilibrium at point C.
Figure 2.2.Canadian Trade Possibilities
 
-Referring to Figure 2.2,Canada has a comparative advantage in:
A) Televisions 
B) Refrigerators 
C) Televisions and refrigerators 
D) Neither televisions nor refrigerators

Quizplus · Accepted Answer

Canada has a comparative advantage in refrigerators if it can produce them at a lower opportunity cost compared to televisions, relative to another country.

Figure 22 Illustrates Trade Data for Canada