Assume that there are 10 million workers in the Canada and that each worker can make either 2 cars or 30 tonnes of wheat in a year.

Q1. Find out the opportunity cost of making a car in Canada? Determine the opportunity cost of producing a tonne of wheat in the Canada? Describe the relationship between the opportunity costs of the two goods.

Q2. Draw the Canada's production possibilities frontier. If Canada selects to consume 10 million cars, how much wheat can it consume devoid of trade? Label this point on the production possibilities frontier.

Q3. Assume that the United States offers to purchase 10 million cars from Canada in exchange for 20 tonnes of wheat per car. If Canada carries to consume 10 million cars, how much wheat does this deal permit Canada to consume? Label this point on your diagram. Should Canada accept the deal?