Question

11. Mexico and Canada produce both oil and apples using labour only. A barrel of oil can be produced with 4 hours of labour in Mexico and 8 hours of labour in Canada. A bushel of apples can be produced with 8 hours of labour in Mexico and 12 hours of labour in Canada. Canada has A) an absolute advantage in oil production. B) an absolute advantage in apple production. C) a comparative advantage in oil production. a comparative advantage in apple production. E) none of the above. D)