SOLVED

11) If the opportunity cost of production for two goods is different between two countries , then  A) trade cannot benefit either country. B) only one country can be made better off by trade. C) mutually beneficial trade is possible. D) trade will only benefit both countries if one can lower its opportunity costs. 12) If Canada has a comparative advantage relative to Mexico in the production of timber, then A) the explicit cost of production for timber is lower in Canada than in Mexico. B) the opportunity cost of production for timber is lower in Canada than in Mexico. C) the implicit costs of production for timber are lower in Canada than in Mexico. D) the average cost of production for timber is lower in Canada than in Mexico. 13) If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this pattern of trade? A) Mexico has a lower opportunity cost of producing bacon than Mexico and Mexico has a comparative advantage in producing fishing poles. B) The opportunity cost of producing fishing poles in Canada is higher than the opportunity cost of producing bacon in Mexico. C) Mexico must have an absolute advantage in producing fishing poles and Canada must have an absolute advantage in bacon. D) Mexico has a higher opportunity cost of producing fishing poles than Canada, and Canada has a higher opportunity cost of producing bacon. 14) The ability of a firm or country to produce a good or service at a lower opportunity cost than other producers is called absolute advantage. 15) If Estonia has an absolute advantage in the production of two goods compared to Norway, Estonia can not benefit from trade with Norway.     16) Refer to Table 19-2. Fill in the following table with the opportunity costs of producing handbags and jackets for Cambodia and Thailand. 17) Refer to Table 19-2. a.Which country has an absolute advantage in the production of handbags and jackets? b.Which country has a comparative advantage in the production of handbags? c.Which country has a comparative advantage in the production of jackets? a.Thailand has an absolute advantage in the production of both products. b.Cambodia has a comparative advantage in the production of handbags. c.Thailand has a comparative advantage in the production of jackets.