Canada and the U

question 134

Multiple Choice

Canada and the U.S.both produce wheat and computer software.Canada is said to have the comparative advantage in producing wheat if

• A)Canada requires fewer resources than the U.S.to produce a bushel of wheat.
• B)the opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.S.
• C)the opportunity cost of producing a bushel of wheat is lower for the U.S.than it is for Canada.
• D)the U.S.has an absolute advantage over Canada in producing computer software.

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Definitions:

Incentive To Work

Refers to the factors (monetary and non-monetary) that motivate individuals to seek and maintain employment.

Negative Income Tax

A proposed system of income support that involves the government paying a guaranteed income to those earning below a certain threshold, essentially a form of welfare.

Two-Tiered Plan

An arrangement or plan that has two levels of operation, benefits, or charges, often used in healthcare, compensation, or service delivery models.

Libertarians

Individuals who advocate for minimal government intervention in the private lives of citizens and emphasize individual freedom and voluntary association.