The typical Canadian worker is able to produce 100 board feet (a unit of measure) of lumber or 1000 light bulbs per year. The world price of a board foot of lumber is $20 and that of a light bulb is $1. Draw the production possibilities frontier for the average Canadian worker by manipulating the line segment labeled PPF.
The typical Canadian worker is able to produce 100 board feet (a unit of measure) of lumber or 1000 light bulbs per year. The world price of a board foot of lumber is $20 and that of a light bulb is $1. Draw the production possibilities frontier for the average Canadian worker by manipulating the line segment labeled PPF.
Chapter1: Making Economics Decisions
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The typical Canadian worker is able to produce 100 board feet (a unit of measure) of lumber or 1000 light bulbs per year. The world
Draw the production possibilities frontier for the average Canadian worker by manipulating the line segment labeled
Transcribed Image Text:The typical Canadian worker is able to produce 100 board feet (a unit of measure) of lumber or 1000 light bulbs per year. The
world price of a board foot of lumber is $20 and that of a light bulb is $1.
Draw the production possibilities frontier for the average Canadian worker by manipulating the line segment labeled PPF.
PPF
ВС
3,000
2,750
2,500
2,250
2,000
5,750
,500
,250
1,000
750
500
250
75 100 125 150 175 200 225 250 275 300
Lumber (board feet)
25
50
Which statement is true about the most likely pattern of trade for Canada?
Canada will specialize in producing light bulbs since the cost of producing bulbs is lower.
Canada will specialize in producing light bulbs since it has a comparative advantage in light bulb production.
Light bulbs
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