1. The following table shows the amount of good A and good B that two countries could produce if they devoted all their resources to that good. Assume both countries have the same quantity of resources and the trade-off between good A and good B remains constant as resources are shifted from one good to another. Answer the questions below and show calculations where appropriate.

• Which country has the comparative advantage in good A? In good B? Explain.

	Canada	India
Good A	400	300
Good B	950	500

• What is India's marginal opportunity cost of producing good A? Good B?
• Based on the data given, what is the terms of trade range for good A in terms of units of good B?