In Which of the Following Products Does Canada Enjoy a Comparative

question 230

Multiple Choice

In which of the following products does Canada enjoy a comparative advantage in global trading?

• A)Videotape recorders
• B)Shoes
• C)Forestry products
• D)Computer chips

---

Definitions:

Externality

An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.

Invisible Hand

A term coined by economist Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society at large.

Economist

A professional who studies the production, distribution, and consumption of goods and services, focusing on how economic agents behave and interact.

Government Intervention

Government intervention involves actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and monetary policies.