The government purchases component of GDP includes salaries paid to soldiers but not Social Security benefits paid to the elderly

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.

Which of the following firms is the closest to being a perfectly competitive firm?

a. a hot dog vendor in New York b. Microsoft Corporation c. Ford Motor Company d. the campus bookstore