Consider the following scenario concerning the United States (US) and Canada (Ca

Question

Consider the following scenario concerning the United States (US) and Canada (Can):

In this scenario, the US has an absolute advantage in producing _________, and Canada has an absolute advantage in producing __________.

1. Syrup; cars.

2. Cars and syrup; nothing.

3. Cars; Syrup.

4. Nothing; syrup and cars.

Population How many cars each citizen can produce How much maple syrup each citizen can produce US     300                         3                                   1 Canada      40                     2                                   6

Explanation / Answer

a) The US has an absolute advantage in the production of Cars (900) and syrup (300) and Canada has an absolute advantage in the production of nothing cars (80) and syrup (240).

The answer is "B".

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