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Assume That the U

Question 122

Multiple Choice

Assume that the U.S. can produce either 10 million cell phones or 20 million picture frames and that Canada can produce either 2 million cell phones or 6 million picture frames. Based on this information, which of the following is true?


A) ​Both countries could benefit if the U.S.traded cell phones to Canada for picture frames.
B) ​Both countries could benefit if the U.S.traded picture frames to Canada for cell phones.
C) ​Canada could gain from trade but the U.S.could not.
D) ​The U.S.could gain from trade but Canada could not.

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