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AP® Microeconomics

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Trade: Benefits for Canada and Mexico

APMICR-XI74NX

The chart below shows the amounts of resources required by Mexico and Canada to produce timber and corn.

Timber Corn
Mexico 10 resource units 5 resource units
Canada 3 resource units 1 resource units



Based on the information above, which of the following is TRUE?

A

It would be advantageous for Canada to produce timber and trade with Mexico for corn.

B

It would be advantageous for Canada to produce corn and trade with Mexico for timber.

C

Canada should produce both timber and corn because it can produce both using fewer resources.

D

Mexico should produce both timber and corn because it can produce both using fewer resources.

E

Trade should not occur because it would not be advantageous to either country.