If Canada Has a Comparative Advantage Over Mexico in the Production

question 57

Multiple Choice

If Canada has a comparative advantage over Mexico in the production of timber, then

• A)the explicit cost of production for timber is lower in Canada than in Mexico.
• B)the opportunity cost of production for timber is lower in Canada than in Mexico.
• C)the implicit costs of production for timber are higher in Canada than in Mexico.
• D)the average cost of production for timber is lower in Canada than in Mexico.

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Definitions:

F Statistic

A ratio derived from the analysis of variance (ANOVA) that compares the variance between group means to the variance within groups.

Automobile Factory

A facility specialized in the manufacturing and assembly of motor vehicles and related components.

Null Hypothesis

A hypothesis that there is no significant difference or effect, serving as the default assumption to be tested against an alternative hypothesis in statistical tests.

Service Time

The duration or period it takes to complete a process or service, often referring to the time customers wait for service or the time taken to serve them.