If Canada Has an Absolute Advantage in the Production of Oil

question 108

Multiple Choice

If Canada has an absolute advantage in the production of oil relative to the United States,then

• A)Canada also has a comparative advantage in producing oil.
• B)Canada also has a comparative advantage in producing some good other than oil.
• C)the opportunity cost of producing oil is higher in Canada than in the United States.
• D)the opportunity cost of producing oil is lower in Canada than in the United States.
• E)Canada may or may not have a comparative advantage in producing oil relative to the United States.

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Definitions:

Hypothetical Question

A question based on assumed or imagined circumstances, often used in legal contexts to explore possibilities or test theories.

Open-ended Question

A question formatted to allow a wide range of answers, encouraging detailed or explanatory responses rather than simple yes/no answers.

Closed-ended Question

A question format that limits respondents' answers to predefined options, making it easier to analyze responses statistically but potentially limiting the depth of insight.

Hypothetical Question

A question based on assumptions or imaginary situations, often used in legal contexts to explore potential outcomes or decisions.