If Canada has a comparative advantage relative to Mexico in the production of timber, then
A) the opportunity cost of production for timber is lower in Canada than in Mexico.
B) the explicit cost of production for timber is lower in Canada than in Mexico.
C) the implicit costs of production for timber are higher in Canada than in Mexico.
D) the average cost of production for timber is lower in Canada than in Mexico.
A
You might also like to view...
At the end of the 18th century, approximately _______ percent of the American people earned a major portion of their income by farming
a. 25 b. 50 c. 70 d. 90
An increase in the dollar price of the Mexican peso (an appreciation of the peso) would cause
a. Mexico's imports to increase and exports to decline. b. Mexico's exports to increase and imports to decline. c. both Mexico's imports and exports to decline. d. both Mexico's imports and exports to rise.
The Maastricht Treaty, signed in 1992, initiated:
A) European political integration. B) an economic and monetary union that featured a common currency. C) an alliance of nations who opposed environmental harms from trade. D) an agreement for free flow of labor and other resources across borders.
An economist for a bicycle company predicts that, other things equal, a rise in consumer incomes will increase the demand for bicycles. This prediction assumes that:
A. there are many goods that are substitutes for bicycles. B. there are many goods that are complementary to bicycles. C. there are few goods that are substitutes for bicycles. D. bicycles are normal goods.