Use the Following Scenario to Answer the Next Two Questions

question 79

Multiple Choice

Use the following scenario to answer the next two questions:
Suppose that Canada, an industrialized nation, and Mexico, a developing nation, both produce clothes and cars. The real wage in Mexico is lower than in Canada. The countries have a free trade agreement. Each nation will find a comparative advantage.
-A has a comparative advantage over B in producing a good if:

• A) A can produce more of the good than B can in a given time period.
• B) A has to trade off more than B does to produce the good.
• C) A has a lower opportunity cost of producing the good than does B.
• D) A has a higher opportunity cost of producing the good than does B.
• E) B can produce more of the good than A can in a given time period.

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Definitions:

Discrimination

The unfair or prejudicial treatment of individuals based on personal characteristics, such as race, gender, or age.

Auto Repair

The act of fixing or servicing vehicles to ensure they operate correctly, often performed by mechanics in garages or workshops.

Employer Discrimination

The unfair treatment of employees or job applicants based on personal characteristics, such as race, age, or gender, rather than job qualifications.

Competitive Markets

Markets characterized by many buyers and sellers, where no single entity can control prices, and products are relatively homogeneous.