Refer to the Information Provided in Figure 18

question 33

Multiple Choice

Refer to the information provided in Figure 18.1 below to answer the questions that follow. Figure 18.1
-Refer to Figure 18.1. Which of the following statements is true?

• A) Only Canada can benefit from trade because the United States has an absolute advantage in the production of both soybeans and alfalfa.
• B) Trade will benefit both countries because the United States has a comparative advantage in the production of soybeans and Canada has a comparative advantage in the production of alfalfa.
• C) Trade will benefit both countries because the United States has a comparative advantage in the production of alfalfa and Canada has a comparative advantage in the production of soybeans.
• D) Trade will benefit neither country because the United States has an absolute advantage in the production of both soybeans and alfalfa, but Canada has a comparative advantage in the production of both soybeans and alfalfa.

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Definitions:

Fair Labor Standards Act

U.S. federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.

Interstate Commerce

Commercial transactions or movement of goods and services across state boundaries, which is regulated by the federal government.

COBRA

A law that provides former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates.

Substantially Reduced

Significantly decreased in amount, size, extent, or degree.