Multiple Choice
If the United States has a comparative advantage over Canada in the production of computers and Canada has a comparative advantage over the United States in the production of cars, then
A) the United States should specialize in the production of cars and trade some cars to Canada for computers.
B) the United States should specialize in the production of computers and trade some computers to Canada for cars.
C) Canada should not trade its cars.
D) neither country can benefit from trade with each other.
Correct Answer:
Verified
Correct Answer:
Verified
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