(1) Does either country have an absolute advantage in the production of steel or aluminum? Explain concisely.

(2) Plot the corresponding PPFs of each country (with steel on the x-axis) and calculate the opportunity cost of steel in terms of aluminum. What is the opportunity cost of steel in each country?

(3) Now, plot the corresponding PPFs of each country (with aluminum on the x-axis) and calculate the opportunity cost of aluminum in terms of steel. What is the opportunity cost of aluminum in each country?

(4) Based on comparative advantage, what should be the pattern of trade between Canada and France?

   

Production (output) per unit of labor
	Canada	France
Steel	500	1,200
Aluminum	1,500	800