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The Next Questions Refer to the Following

Question 14

Multiple Choice

The next questions refer to the following.
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof.
-Then in terms of production,


A) Mexico has an absolute advantage in producing goods
B) Canada should produce both goods and services, but mostly goods
C) neither country should produce services
D) the opportunity cost of producing goods is higher in Canada than in Mexico
E) Mexico is relatively more efficient at producing services than goods

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