If Canada Has an Absolute Advantage in the Production of Oil

question 46

Multiple Choice

If Canada has an absolute advantage in the production of oil relative to the United States,then we know that

• A)Canada also has a comparative advantage in producing oil.
• B)Canada also has a comparative advantage in producing some good other than oil.
• C)the opportunity cost of producing oil is higher in Canada than in the United States.
• D)the opportunity cost of producing oil is lower in Canada than in the United States.
• E)Canada may or may not have a comparative advantage in producing oil relative to the United States.

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