Below Is Some Hypothetical Data for the Countries of Canada

question 155

Multiple Choice

Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)

-Suppose that a country has a comparative advantage in the production of wheat.Which of the following statements is true?

• A)It must also have an absolute advantage in the production of wheat.
• B)The purchasing power parity theory must also be in its favour.
• C)Specialization is wise only up to a point because of the law of increasing costs.
• D)Specialization is wise only if exchange rates are fixed.

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Definitions:

Interindividual Variability

The fact that people do not age in the same way or at the same rate.

Multidirectionality

In the context of cognitive development, the fact that some aspects of intellectual functioning may improve while others remain stable or decline.

Plasticity

The capacity of the brain to change and adapt structurally and functionally in response to experiences or trauma.

Crystallized Intelligence

The ability to use knowledge, skills, and experience, which generally increases with age, contrasting with fluid intelligence.