Table 3-4 -Refer to Table 3-4. If Alberta and Manitoba Trade Based

question 190

Multiple Choice

Table 3-4

-Refer to Table 3-4. If Alberta and Manitoba trade based on the principle of comparative advantage, what will be exported?

• A)Alberta will export baskets and Manitoba will export birdhouses.
• B)Alberta will export birdhouses and Manitoba will export baskets.
• C)Alberta will export neither good and Manitoba will export both goods.
• D)Alberta will export both goods and Manitoba will export neither good.

---

Definitions:

Franchiser

A business entity that grants a license to a third party for the conducting of a business under the franchiser's marks.

Product Quality

The perceived value or characteristics of a product that meet or exceed the expectations of its users.

Franchise Fees

Payments made by franchisees to franchisors, typically in exchange for the right to use the franchisor's business model and branding.

Nonexcludable

describes a good or service that cannot be withheld from individuals who do not pay for it, characteristic of public goods.