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.
Correct Answer:

Verified
Correct Answer:
Verified
Q252: Which statement is TRUE?<br>A) Consumers benefit from
Q253: When there is no trade between Econostan
Q254: Some argue that select industries need protection
Q255: Which statement does NOT describe a concern
Q256: The United States has not used quotas
Q257: The main reason for trade restrictions is
Q258: One problem with the infant industry argument
Q260: Describe some of the trade restrictions used
Q261: _ refers to circumstances when a market
Q262: (Figure: Market for Watches in Countries A