(Table) Based on the table, how would you characterizę absolute advantage for the goods: Canada's Production Possïbilities Tons of Steel Airplanes 15 10 4 12 Mexico's Production Possibilities Tons of Steel Airplanes 6. 4 4 6. OA. Mexico has an absolute advantage over Canada in producing both steel and airplanes. B. Canada has an absolute advantage over Mexico in producing steel but not airplanes. C. No country has an absolute advantage in producing any of the goods O D. Canada has an absolute advantage over Mexico in producing both steel and airplanes.

Question
(Table) Based on the table, how would you characterizę absolute advantage for the goods:
Canada's Production Possïbilities
Tons of Steel
Airplanes
15
10
4
12
Mexico's Production Possibilities
Tons of Steel Airplanes
6.
4
4
6.
OA. Mexico has an absolute advantage over Canada in producing both steel and airplanes.
B. Canada has an absolute advantage over Mexico in producing steel but not airplanes.
C. No country has an absolute advantage in producing any of the goods
O D. Canada has an absolute advantage over Mexico in producing both steel and airplanes.
View transcribed image text
Expand

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Economics

Opportunity Cost

International Trade

Related Economics Q&A

Find answers to questions asked by students like you.

Q: what is the effect on transportation costs if the purchaser controls a shipment directly from the su...

A: If in case the purchaser controls a shipment directly from the supplier it would lead to decrease in...

Q: Identify and explain the main factors that contributed to the financial crisis of 2007–    2008.

A: The Great Recession was a period of a severe economic and financial crisis that engulfed the global ...

Q: ADVANCED ANALYSIS Assume the following values for the diagrams below: Q = 12 bags. Q2 = 7 bags. Q3 =...

A: The consumer surplus (CS) depicts the prices that a typical customer is willing to pay illustrated b...

Q: Consider the following production function                                                          ...

A: Hi! Thank you for the question but as per the guidelines, we only answer up to three subparts at a t...

Q: Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2.  Also, the consumer has $72 to...

A: Given, U(X,Y) = X1/2*Y1/2 Income of the consumer = $ 72 Price of X = $1 Price of Y= $1 Utility is ma...

Q: Relate the law of diminishing returns to a firm’s short-run production costs.

A: The law of diminishing returns apply to the production processes and generally in short-run it state...

Q: Define the equilibrium of a market

A: A market is composed of producing and consuming agents who interact with each other to result in tra...

Q: The Malcolm Baldrige National Quality AwardBasic Contents of a Supplier Quality Manual?

A: The Malcolm Baldrige National Quality Award is the award which relates to performance excellence. In...

Q: What types of products do the DVCs typically export? How do those exports relate to the law of compa...

A: Industrially advance countries are known IACs and developing countries are DVCs. IACs are high incom...

Q: Suppose a consumer’s utility function is given by U(X,Y) = X1/2*Y1/2.  Also, the consumer has $72 to...

A: U(X,Y) = X1/2*  Y1/2  PX = $1 PY = $1 Budget= $72

Q: 7. (Market for Pollution Rights) The graph in page 302 shows the market for pollution rights. a. If ...

A: "Since you have asked multiple parts, we will answer only first three parts for you. If you have any...

Q: The table gives the income elasticities of demand for various products. Use it to answer the followi...

A: Income elasticity refers to the responsiveness of demand for a good when the income of the consumer ...

Q: Consumers become pessimistic about the state of the economy and futureproductivity growth.

A: If customer in the nation become pessimistic regarding the stage of the economy & the growth of ...

Q: Illustrate and interpretthe short-run and longrun effects of temporary and permanentsupply shocks

A: Aggregate supply curve will be affected when there is supply shock or negative supply shock. Supply ...

Q: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current j...

A: Explicit cost refers to out of pocket expense that is incurred in order to purchase or hire input. I...

Q: In the 1980s, PepsiCo Inc., which then had 28 percent of the soft-drink market, proposed to acquire ...

A: The merging is the strategy used under the oligopoly market where there are only a few large sellers...

Q: If wage rates are not flexible, can the economy be self-regulating? Explain your answer.

A: Classical economics perceives an economy to be a self-regulating system that is capable of correctin...

Q: Discuss the following statement: Supply management not only buys parts or servicesfrom suppliers—it ...

A: Purchasing the future & current performance ability or getting a sourcing based on ability is th...

Q: Diluted Happiness: Consider a relationship between a bartender and a customer. The bartender serves ...

A: As while solving for part (a), Nash equilibria for customer is to not buy and Nash equilibria for ba...

Q: What is moral hazard?

A: Asymmetric information arises in the market, where one of the parties involved in the transaction ha...

Q: Make a case that neither pure competition nor pure monopoly is conducive to a great deal of R&D ...

A: A purely competitive market comprises a large number of small firms that produce and supply goods or...

Q: It has been mentioned that there should be a match of supply and demand in a company that produces s...

A: Click to see the answer

Q: Assume that you own a local brewery and that you sell 12 packs of your beer for $10 each. You hire a...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Use a circular flow diagram to show how the allocation of resources and the distribution of income a...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: just answer part b

A: A normal good is one of which the consumer purchases more with an increase in income. An inferior go...

Q: Q1) Sales are a function of advertising in newspapers and magazines (X, Y).                 S= XY2 P...

A: The sales (S) can be maximized with the constraint or restriction of the budget line. The budget lin...

Q: 1.How has globalization had a major impact on countrys economy? 2.what is one of the core propostion...

A: Globalization is the process by which businesses start operating in an international scale. Also, gl...

Q: China had a $214 billion overall current account surplus in 2012. Assuming that China’s net debt for...

A: Current account (CA) includes the trade of G&S done with abroad while the capital account inculc...

Q: Jen from Thunder Bay consumes housing (H) and food (F). Her studentstipend is $600/month. She has a ...

A: Utility maximization is the rational objective of every consumer that involves the consumption of a ...

Q: What is the curve going through points A, B, C, and D? Income Consumption Curve Price Consumption Cu...

A: Hi, since you have asked multiple questions we will answer only the 1st one. 

Q: How does a frequently indented coastline contribute to an area's development?

A: Area development as a whole is the most important concept in the macro economics. But the main issue...

Q: Did the supplier itself or a subcontractor actually produce the sample?

A: Supplier is a person who supplies and delivers the commodities in the market in a concerned geograph...

Q: A DVC’s population is growing 2 percent per year and output is growing 3 percent per year. If the go...

A: A DVC nation indicates the economy which is developing into a developed economy. The main factor or ...

Q: What Is Developing a Worldwide Sourcing Program?

A: World-wide sourcing program or the global sourcing strategy is considered to be the process by which...

Q: Complete the following table.    Units           TFC       TVC    TC       AFC       AVC      AC   ...

A: Hi, thank you for the question. As per the guidelines, we are allowed to attempt only first question...

Q: If new substitutes are developed for a product, what will likely happen to the total revenue maximiz...

A: The goods are the commodities that satisfy the needs of the individuals and provide satisfaction to ...

Q: Suppose that in Zambia, people consume only two goods, peas and beans. Suppose that John, a citizen ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Please see the attachnent for the question.

A: Expenditure aggregate is the total of all the expenses that will be undertaken in an economy by the ...

Q: Benjamin Franklin said “I think the best way of doing good to the poor is not making them easy in po...

A: Poverty is a situation where an individual is considered as poor as they are unable to fulfill their...

Q: What Is Factors Driving Successful Global SourcingPrograms?

A: The factors responsible for driving successful global sourcing programs are:- Controlling and cost ...

Q: The accompanying hypothetical production possibilities tables are for New Zealand and Spain. Each co...

A: Because individuals have limited resources at their disposal, the problem of scarcity requires them ...

Q: (a) A risk aversion strategy (b) A risk-taking strategy (c) The framing effect

A: a. Risk aversion strategy refers to the strategy that protect the capital from the loss over the pot...

Q: Two goods have a cross-price elasticity of demand of 1.2:   Would you describe the nature of goods?...

A: Cross price elasticity of demand for two goods is given as 1.2 It can be defined as the changes in t...

Q: Define Annual equivalent-worth (AE)

A: The AE (annual equivalent worth) is the annual value of an asset of owning, operating, maintain over...

Q: Learning how to use software takes time. So once customers have learned to use a particular software...

A: Expenditure on research and development carries a great deal of risk. The improvement of an existing...

Q: Your enterprising uncle opens a sandwich shopthat employs 7 people. The employees are paid$12 per ho...

A: Profit is maximizing when the wage rate is equal to the MRP, That is, W rate is equal the marginal p...

Q: What are the best ways of capturing the welfare improvements made possible by free trade, free capit...

A: Free trade makes possible welfare improvements. This is because free trade results in more choices f...

Q: The nation of Upstandia uses kroner for money and its tax code is such that a person making 100,000 ...

A: There three main tax systems in an economy – Proportional Tax, Progressive Tax and Regressive Tax. I...

Q: Differentiate between laissez-faire capitalism, the command system, and the market system.

A: Laissez-faire is a theory in economics that restricts government intervention in the economy. That i...

Q: How do you think each of the following would affect the world price of oil -the Alaskan oil pipeline...

A: The completion of the Alaskan oil pipeline indicates that the transportation of oil from the source ...

Transcribed Image Text

(Table) Based on the table, how would you characterizę absolute advantage for the goods: Canada's Production Possïbilities Tons of Steel Airplanes 15 10 4 12 Mexico's Production Possibilities Tons of Steel Airplanes 6. 4 4 6. OA. Mexico has an absolute advantage over Canada in producing both steel and airplanes. B. Canada has an absolute advantage over Mexico in producing steel but not airplanes. C. No country has an absolute advantage in producing any of the goods O D. Canada has an absolute advantage over Mexico in producing both steel and airplanes.