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Based on the graphs above, which of the following is true? A.)The U.S. has an absolute advantage in both goods. B.)Canada has an absolute advantage in cars. C.)The U.S. has a comparative advantage in cars. D.)The U.S. has a comparative advantage in wheat. E.)Cannot be determined from the information given. Based on the graphs above, which of the following is true? Group of answer choices A.)The opportunity cost of a car in the U.S. is 1 unit of wheat. B.)The opportunity cost of a car in the U.S. is 5 units of wheat. C.)The opportunity cost of a car in Canada is 1/2 unit of wheat. D.)The opportunity cost of a car in Canada is 10 units of wheat. E.)Cannot be determined from the information aiven

Based on the graphs above, which of the following is true? A.)The U.S. has an absolute advantage in both goods. B.)Canada has an absolute advantage in cars. C.)The U.S. has a comparative advantage in cars. D.)The U.S. has a comparative advantage in wheat. E.)Cannot be determined from the information given. Based on the graphs above, which of the following is true? Group of answer choices A.)The opportunity cost of a car in the U.S. is 1 unit of wheat. B.)The opportunity cost of a car in the U.S. is 5 units of wheat. C.)The opportunity cost of a car in Canada is 1/2 unit of wheat. D.)The opportunity cost of a car in Canada is 10 units of wheat. E.)Cannot be determined from the information aiven

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The graphs below show the production possibilities curves (PPC) for the U.S. and Canada, which both produce cars and wheat. Initially suppose that the two countries trade only with each other. Careful: the figures are not on the same scale, don't use the scale for any answers. Instead use your reasoning and calculations. 16+ 14+ 12+ 10+ ++ 7 8 1 2 4 7 8 9 1 2 3 4 5 U.S. Cars per day Canadian Cars per day Based on the graphs above, which of the following is true? A.)The U.S. has an absolute advantage in both goods. B.)Canada has an absolute advantage in cars. C.)The U.S. has a comparative advantage in cars. D.)The U.S. has a comparative advantage in wheat. E.)Cannot be determined from the information given. Based on the graphs above, which of the following is true? Group of answer choices A.)The opportunity cost of a car in the U.S. is 1 unit of wheat. B.)The opportunity cost of a car in the U.S. is 5 units of wheat. C.)The opportunity cost of a car in Canada is 1/2 unit of wheat. D.)The opportunity cost of a car in Canada is 10 units of wheat. E.)Cannot be determined from the information given. U.S. Wheat per day Candian wheat per day
Transcribed Image Text:The graphs below show the production possibilities curves (PPC) for the U.S. and Canada, which both produce cars and wheat. Initially suppose that the two countries trade only with each other. Careful: the figures are not on the same scale, don't use the scale for any answers. Instead use your reasoning and calculations. 16+ 14+ 12+ 10+ ++ 7 8 1 2 4 7 8 9 1 2 3 4 5 U.S. Cars per day Canadian Cars per day Based on the graphs above, which of the following is true? A.)The U.S. has an absolute advantage in both goods. B.)Canada has an absolute advantage in cars. C.)The U.S. has a comparative advantage in cars. D.)The U.S. has a comparative advantage in wheat. E.)Cannot be determined from the information given. Based on the graphs above, which of the following is true? Group of answer choices A.)The opportunity cost of a car in the U.S. is 1 unit of wheat. B.)The opportunity cost of a car in the U.S. is 5 units of wheat. C.)The opportunity cost of a car in Canada is 1/2 unit of wheat. D.)The opportunity cost of a car in Canada is 10 units of wheat. E.)Cannot be determined from the information given. U.S. Wheat per day Candian wheat per day
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