Suppose Canada can produce either 120 units of goods or 80 units of services. Mexico can produce 90 units of goods or 50 units of services.
a) Graph a production possibilities curve for Canada and make a point where they will produce.
b) Graph a production possibilities curve for Mexico and make a point where they will produce.
c) List which country has the comparative advantage in Goods.
d) List which country has the comparative advantage in services.
e) List which country should produce which, in order to maximize gains from trade.
