Suppose Canada Could Produce All Goods and Services More Cheaply

question 8

Multiple Choice

Suppose Canada could produce all goods and services more cheaply than all other countries.In that case,

• A)no trade would occur because Canada would have an absolute advantage in producing everything.
• B)no trade would occur because Canada would not have a comparative advantage in producing anything.
• C)trade would probably take place because Canada would still have a comparative disadvantage in producing some goods.
• D)trade would occur but only if other countries also have an absolute advantage.
• E)trade would occur but only if other countries subsidize the import of Canadian goods and services.

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Definitions:

Friends

Social connections between individuals that involve mutual affection, support, and a sense of belonging.

Type A

A personality type characterized by high levels of competitiveness, self-imposed stress, impatience, and a sense of urgency, often linked to a higher risk of heart disease.

Heart Disease

A range of conditions that affect the heart, including blood vessel diseases, heart rhythm problems, and heart defects.

Stress

A state of mental or emotional strain or tension resulting from adverse or demanding circumstances.