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If Canada Is Using All Its Resources to Their Fullest

Question 259

Multiple Choice

If Canada is using all its resources to their fullest extent, it can produce either 10 million iPads or 5 million HDTVs. If Mexico is using all its resources to their fullest extent, it can produce either 6 million iPads or 6 million HDTVs. Thus


A) Canada has a comparative advantage in producing iPads.
B) Canada has an absolute advantage in producing both goods, and a comparative advantage in producing HDTVs.
C) Mexico has an absolute advantage in producing both goods.
D) Mexico has a comparative advantage in producing iPads.

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