Canada and Chile Produce Both Oil and Apples Using Labour

question 92

Multiple Choice

Canada and Chile produce both oil and apples using labour only. A barrel of oil can be produced with 4 hours of labour in Canada and 8 hours of labour in Chile. A bushel of apples can be produced with 8 hours of labour in Canada and 12 hours of labour in Chile. Chile has

• A) an absolute advantage in producing oil.
• B) an absolute advantage in producing apples.
• C) a comparative advantage in producing oil.
• D) a comparative advantage in producing apples.
• E) none of the above.

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Acronym for "Bona Fide Occupational Qualification," referring to a qualification that allows employers to consider characteristics typically protected by discrimination laws when they are reasonably necessary to the normal operation of a particular business.

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