42. Canada and the U.S. both produce wheat and computer software. Canada is said

Question

42. Canada and the U.S. both produce wheat and computer software. Canada is said to have the comparative ad wheat if a. Canada requires fewer resources than the U.S. to produce a bushel of wheat. b. the opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.s c. the opportunity cost of producing a bushel of wheat is lower for the U.S. than it is for Canada. d. the U.S. has an absolute advantage over Canada in producing computer software. 43. Canada and the U.S. both produce wheat and computer software, and Canada has the comparative advantage in producing wheat. If and when trade is allowed between the U.S. and Canada, a. Canada will export wheat to the U.S. and import software from the U.S. b. Canada will export software to the U.S. and import wheat from the U.S. c. Canada will export both wheat and software to the U.S. d. The U.S. will export both wheat and software to Canada. 44. One bag of flour is sold for $1.00 to a bakery, which uses the flour to bake bread that do these three transactions contribute to the country's GDP? a. $2.00. b. $3.00 c. $4.00. d. $6.00. is sold for $3.00 to consumers. How much 45. What factor may not have played an important role in increasing female labor-force participation rate between 1950 through 1990? a. single mother. b. tight budget. c. equal right movement. d. increasing child labor 46. To be counted as labor force, an individual must: a. be either the employed or unemployed b. not have a job, and not looking for work. c. be either student or housewives. d. be willing to accept the first job offer. 47. The real rate of interest is defined as: a. One minus the nominal rate of interest b. The nominal rate of interest plus inflation rate.

Explanation / Answer

First question is answered below

42.

Correct option: (b)

Reason: A country is said to have comparative advantage in production of a good if it has lower opportunity cost of production of that good.

In the given case, if Canada has comparative advantage in production of wheat, it means that it has lower opportunity cost associated with producing wheat.

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