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Mexico and Canada Produce Both Oil and Apples Using Labour

Question 113

Multiple Choice

Mexico and Canada produce both oil and apples using labour only.A barrel of oil is produced with 4 hours of labour in Mexico and 8 hours of labour in Canada.A bushel of apples is produced with 8 hours of labour in Mexico and 12 hours of labour in Canada.Canada has


A) an absolute advantage in oil production.
B) an absolute advantage in apple production.
C) a comparative advantage in oil production.
D) a comparative advantage in apple production.
E) none of the above.

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