The Accompanying Productivity Table Shows How Many Bushels of Either

question 187

Multiple Choice

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 benefits to Canada from trading with her.

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Definitions:

Financial Markets

Platforms or systems where buyers and sellers engage in the trading of financial assets such as stocks, bonds, currencies, and derivatives.

Benchmark

A standard or point of reference against which things may be compared or assessed.

Agency Problem

A conflict of interest between a company's management and its shareholders, where the management may act in their own best interests rather than those of the shareholders.