If the United States Has a Comparative Advantage Over Canada

question 173

Multiple Choice

If the United States has a comparative advantage over Canada in the production of computers and Canada has a comparative advantage over the United States in the production of cars, then:

• A) neither country can benefit from trade with each other.
• B) the United States should specialize in the production of cars.
• C) the United States should specialize in the production of computers and trade some computers to Canada for cars.
• D) Canada should not trade its cars.

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Definitions:

Unemployment Insurance

A government-provided benefit offering temporary financial assistance to workers who have lost their jobs through no fault of their own, to help cover living expenses.

Structural Unemployment

A type of joblessness resulting from a disparity between the abilities available in the workforce and the competencies required by businesses.

Manufacturing Jobs

Employment in industries that produce goods using labor and machines, typically within a factory or production facility.

Unemployment Insurance

A government program that provides financial assistance to unemployed workers, helping to mitigate the loss of income during periods of joblessness.