Canada Can Produce 30 Computers for Every Car It Produces,and

question 156

Multiple Choice

Canada can produce 30 computers for every car it produces,and Japan can produce 15 computers for every car it produces.Based on this information,which statement is INCORRECT?

• A) Canada should specialize in computer production.
• B) Japan has the comparative advantage in car production.
• C) There will be gains from trade if Canada exports computers to Japan.
• D) Japan has an absolute advantage in car production.

---

Definitions:

Autism

A neurodevelopmental disorder characterized by challenges with social interaction, communication, and by restricted and repetitive behavior.

Asperger's Disorder

A former diagnostic category pertaining to individuals with high-functioning autism spectrum disorders, characterized by difficulties in social interaction and restricted, repetitive patterns of behavior, interests, or activities.

Market Potential

The maximum total sales of a product or service that all companies in a market could collectively achieve in a specific time period under ideal conditions.

Actual Market

The existing marketplace where products or services are being traded, as opposed to potential or targeted markets not yet reached.