Question 1
In 2017 the value of goods exported from Canada was approximately $________ while the value of goods imported was approximately $________. Each of these flows represents ________% of Canada's GDP.
◦ 12 billion; 12 billion; 1
◦ 50 billion; 30 billion; 6
◦ 25 billion; 25 billion; 10
◦ 100 billion; 100 billion; 15
◦ 593 billion; 602 billion; 29
Question 2
Ireland and Japan are assumed to produce only wool and steel, to have full employment and complete mobility of resources between industries. Their production possibilities boundaries before trade are drawn in solid lines. It is assumed that the two countries have the same amount of resources. Their consumption possibilities after trade are shown by the dotted lines. The outputs of wool and steel are given in physical units.
FIGURE 19-1
Refer to Figure 19-1. Before any trade takes place, the opportunity cost of a unit of steel is
◦ 3/4 unit of wool in Ireland; 3/8 unit of wool in Japan.
◦ 4 units of wool in Ireland; 8 units of wool in Japan.
◦ 4/3 unit of wool in Ireland; 8/3 unit of wool in Japan.
◦ 3 units of wool in Ireland; 3 units of wool in Japan.
◦ 4 units of wool in Ireland; 4 units of wool in Japan.
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