Suppose that Canada can produce 15 timber or 3 film and Mexico can produce 9 timber or 3 film. Suppose that opportunity costs are constant. Which of the following is FALSE?
A) Canada has an absolute advantage in timber production.
B) Mexico has a comparative advantage in film production.
C) The opportunity costs for producing timber are lower in Canada than in Mexico.
D) Canada and Mexico would find trade mutually advantageous at a ratio of one unit of film to six units of timber.
D
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Which of these statements best represents the law of demand? a. When buyers' tastes for a good increase, they buy more of the good
b. When the size of the consumer population rises, buyers purchase more of most goods. c. When the price of a good decreases, buyers purchase more of the good. d. Changes in preferences lead to changes in demand.
When a country takes a multilateral approach to free trade, it
a. removes trade restrictions on its own. b. reduces its trade restrictions while other countries do the same. c. does not remove trade restrictions no matter what other countries do. d. is willing to trade with multiple countries at once.