The Accompanying Productivity Table Shows How Many Bushels of Either

question 307

Multiple Choice

$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { Wheat } \\\text { (Bushels) }\end{array} & \begin{array} { c } \text { Rice } \\\text { (Bushels) }\end{array} \\\hline \text { India } & 10 & 10 \\\hline \text { Canada } & 40 & 20 \\\hline\end{array}$$ The accompanying productivity table shows how many bushels of either wheat or rice can be produced in India and Canada with 1 unit of input. To achieve gains from specialization and trade,

• A) India should export rice to Canada and import Canadian wheat.
• B) India should export wheat to Canada and import Canadian rice.
• C) Canada should produce both wheat and rice and not trade with India.
• D) India cannot offer any bene?ts to Canada from trading with her.

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