The United States Would Have an Absolute Advantage Compared to Canada

question 131

Multiple Choice

The United States would have an absolute advantage compared to Canada in the production of wheat if

• A) wheat sells for a higher price in the United States than in Canada.
• B) the demand for wheat is higher in the United States than in Canada.the United States.
• C) the United States uses fewer resources to produce wheat than Canada does.
• D) wheat can be produced at lower cost in terms of other goods than it could be in Canada.

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Definitions:

Unit of Capital

The smallest divisible amount of capital that can be invested in or allocated to a project or investment.

Stamping Press

A machine used in manufacturing to shape or cut materials by deforming them with a die and high pressure.

Production Costs

Represents the total expenses incurred in the manufacturing of a product, including materials, labor, and overhead.

Chrysler Belvedere

A line of American automobiles produced by Chrysler from the 1950s to the 1970s, known for its stylish design and spacious interiors.