Assume That in Canada the Opportunity Cost of Producing One

question 91

Multiple Choice

Assume that in Canada the opportunity cost of producing one television set is two bushels of wheat. Assume that in the United States the opportunity cost of producing one bushel of wheat is two television sets. If these two countries specialize according to comparative advantage and then trade with each other:

• A) Canada will import both televisions and wheat.
• B) Canada will import wheat and export televisions.
• C) the United States will import wheat and export televisions.
• D) the United States will import both televisions and wheat.

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Definitions:

Adrenal Medulla

Inner portion of adrenal gland; secretes epinephrine and norepinephrine.

Epinephrine

A hormone also known as adrenaline, produced mainly by the adrenal glands, playing a central role in the body's 'fight-or-flight' response to stress, increasing heart rate, muscle strength, blood pressure, and sugar metabolism.

Aldosterone

A hormone produced by the adrenal glands that helps regulate blood pressure by controlling sodium and potassium levels in the body.

Pituitary Gland

Pea-sized endocrine gland in the forebrain; interacts closely with the adjacent hypothalamus.