Figure 2.2 illustrates trade data for Canada.The figure assumes that Canada attains international trade equilibrium at point C.
Figure 2.2.Canadian Trade Possibilities

-Concerning possible determinants of international trade,which are sources of comparative advantage? Differences in:
A) Methods of production
B) Tastes and preferences
C) Technological know-how
D) All of the above

Question

Figure 2.2 illustrates trade data for Canada.The figure assumes that Canada attains international trade equilibrium at point C.
Figure 2.2.Canadian Trade Possibilities
 
-Concerning possible determinants of international trade,which are sources of comparative advantage? Differences in:
A) Methods of production 
B) Tastes and preferences 
C) Technological know-how 
D) All of the above

Quizplus · Accepted Answer

Comparative advantage can arise from differences in methods of production, tastes and preferences, and technological know-how. Therefore, all of the above options are sources of comparative advantage.

Figure 22 Illustrates Trade Data for Canada