Multiple Choice
Use the following to answer question(s) : Production Possibilities Schedule for Two Commodities
-(Exhibit: Production Possibilities Schedule for Two Commodities) Assuming constant costs in the neighborhood of their current levels of production, the exhibit shows the number of units of commodity X each country would have to forgo to produce the additional units of commodity Y indicated.Further assume that the only input is labor and that it remains fully employed.If there were unrestricted trade and specialization according to the law of comparative advantage:
A) the United States would export Y and Canada would export X.
B) the United States would export X and Canada would export Y.
C) the United States would export both X and Y.
D) the United States and Canada would each be self-sufficient in both X and Y.
Correct Answer:
Verified
Correct Answer:
Verified
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