The following tables describe the hypothetical PPC (product possibility curves) for Canada and North Korea for Fish and Lumber (both in millions of tonnes). Before trade Canada produce at point D and North Korea at point B.

Canada	A	B	C	D	E	F
Fish	0	4	8	12	16	20
Lumber	100	80	60	40	20	0
North Korea	A	B	C	D	E	F
Fish	0	10	20	30	40	50
Lumber	15	12	9	6	3	0

A) In Canada the opportunity cost of 1 unit of Fish is Answer:

0.2 / 0.30 / 0.83 / 3.335

B) In North Korea the opportunity cost of 1 unit of Lumber is Answer:

0.2 / 0.3 / 0.83 / 3.335

C) Canada has a comparative advantage in Answer:

FishLumber

both Fish and Lumber

neither Fish nor Lumber

D) and therefore should importAnswer:

FishLumber

both Fish and Lumber

neither Fish nor Lumber

E) Assume each country specializes in its area of comparative advantage.

For trade to occur, the limits of the terms of trade for 1 uint of Lumber will be Answer:

0.2 to 3.33

0.3 to 5.0

0.3 to 0.83

1.2 to 3.0