Suppose that Canada can produce 15 timber or 3 film and Mexico can produce 9 timber or 3 film. Suppose that opportunity costs are constant. Which of the following is FALSE?
A) Canada has an absolute advantage in timber production.
B) Mexico has a comparative advantage in film production.
C) The opportunity costs for producing timber are lower in Canada than in Mexico.
D) Canada and Mexico would find trade mutually advantageous at a ratio of one unit of film to six units of timber.
D
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Everything else remaining unchanged, if the demand curve for reserves shifts to the right and borrowed reserves is zero:
A) there will be a decrease in both the federal funds rate and the quantity of reserves. B) there will be an increase in the federal funds rate but no change in the quantity of reserves. C) there will be an increase in both the federal funds rate and the quantity of reserves. D) there will be a decrease in the federal funds rate but no change in the quantity of reserves.
A decrease in U.S. income would have what effect on the foreign exchange market for Israeli shekels?
a. shift its demand curve to the right b. shift its demand curve to the left c. shift its supply curve to the right d. shift its supply curve to the left e. have no effect on the demand and supply curves
Both the standard of living and the growth of real GDP per person vary widely across countries
a. True b. False Indicate whether the statement is true or false
The Law of Supply ensures that supply curves slope upward
Indicate whether the statement is true or false