5 Questions
What is the ratio of bushels of soybeans per barrel of oil that Mexico would need to receive in order to gain by producing and exporting oil and importing soybeans?
3.13 bushels of soybeans per barrel of oil
Which country has a comparative advantage in producing soybeans?
Canada
If Mexico received 3 bushels of soybeans per barrel of oil, would it gain from producing and exporting oil and importing soybeans?
No
In terms of oil production, which country has an advantage?
Canada
If Mexico exported all its soybeans and imported all its oil needs, how much more soybeans per barrel of oil does Mexico need to gain from this trade?
More than 1.5 but less than 2.5 bushels of soybeans per barrel of oil
Test your understanding of production possibilities schedules with this quiz. Determine when a country would gain from producing and exporting one good over another based on the given data.
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