If Canada Has a Comparative Advantage Relative to Mexico in the Production

question 135

Multiple Choice

If Canada has a comparative advantage relative to 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.

---

Definitions:

Problem-solving Ability

The capacity to process information, analyze complicated situations, and come up with effective solutions.

Affect-as-information Hypothesis

The theory suggesting that individuals use their current emotions to infer attitudes and preferences under certain conditions.

Anticipated Emotions

The emotions people expect to feel due to future events or outcomes.

Current Emotional States

The present feelings or mood of an individual, ranging from happiness and joy to anger and sadness.