Information for questions 21-25 The figure below depicts th…
Information for questions 21-25 The figure below depicts the production possibilities curve (PPC) for the U.S. and Canada, two countries that can produce cars and trucks. Assume the two countries trade only with each other. The U.S. and Canada have the same total amount of hours of labor engaged in production. In which good does the U.S. have absolute advantage? Hint: remember that the U.S. and Canada have the same amount of labor. Look at their PPCs. What is the maximum amount of cars that U.S. workers can produce? What about Canadian workers? What does that tell you about the productivity of U.S. versus Canadian workers in cars? What about trucks?