Table 31.1.1 Glazeland's Doughnut Market

Table 31.1.1
Glazeland's Doughnut Market

-Canada produces both lumber and wine. Canada exports lumber and imports wine. The rest of the world imports Canadian lumber and exports wine to Canada. Canada has a comparative advantage in producing ________. The rest of the world has a comparative advantage in producing ________.

A) lumber; wine
B) wine; lumber
C) wine; wine
D) lumber; lumber
E) a good other than lumber or wine; wine

Correct Answer:

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