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The Accompanying Productivity Table Shows How Many Bushels of Either

Question 307

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 Wheat  (Bushels)   Rice  (Bushels)   India 1010 Canada 4020\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Wheat } \\\text { (Bushels) }\end{array} & \begin{array} { c } \text { Rice } \\\text { (Bushels) }\end{array} \\\hline \text { India } & 10 & 10 \\\hline \text { Canada } & 40 & 20 \\\hline\end{array} The accompanying productivity table shows how many bushels of either wheat or rice can be produced in India and Canada with 1 unit of input. To achieve gains from specialization and trade,


A) India should export rice to Canada and import Canadian wheat.
B) India should export wheat to Canada and import Canadian rice.
C) Canada should produce both wheat and rice and not trade with India.
D) India cannot offer any bene?ts to Canada from trading with her.

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