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Suppose there are 20 million workers in Canada and that each of these workers can produce either 3 cars or 15 bushels of wheat in

Suppose there are 20 million workers in Canada and that each of these workers can produce either 3 cars or 15 bushels of wheat in a year.

  1. what is the opportunity cost of producing a car in Canada? What is the opportunity cost of producing a bushel of wheat in Canada? If the US's opportunity cost for cars was 4 bushels of wheat, and its opportunity cost for a bushel of wheat was 1/4 of a car, and both countries decided to trade, which country would specialize in cars and which country would specialize in wheat?
  2. Draw Canada's production possibilities frontier and show where it would produce if it decided to consume an equal number of cars and of bushels of wheat.
  3. How would it distribute its workers to produce the quantities in question 2.?

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