Mexico Is Relatively Labour-Abundant When Compared with Canada

question 73

Multiple Choice

Mexico is relatively labour-abundant when compared with Canada.Therefore,Mexico has a comparative advantage in _____ compared with Canada.

• A) all goods
• B) goods that are labour-intensive in production
• C) goods that are capital-intensive in production
• D) goods that are land-intensive in production

---

Definitions:

Natural Rate

Often refers to the natural rate of unemployment where the labor market is in equilibrium, or the natural rate of interest that equates savings and investment.

Unemployment Rate

The segment of the labor population that is without employment and actively seeking a job.

Potential GDP

The maximum output an economy can achieve when utilizing all its resources efficiently, without causing inflation.

Fiscal Policy

Fiscal Policy involves government spending and taxation decisions intended to influence economic activity, targeting issues like unemployment and inflation.