suppose that there are 10 million workers in canada and that each of these workers can produce either 2 cars or 30 bushels of wheat a year.

a) what is the opportunity cost of producing a car in canada? a bushel of wheat in canada? ex[lain the relationship between the opportunity costs of the two goods.

b) draw canadas production possibilities frontier. if canada chooses to consume 10 million cars, how much wheat con it consume w/out trade? where is this located on the priduction possibilities frontier?

c) nnow suppose that the united states offers to buy 10 million cars from canada in exchange for 20 bushels of wheat per car. if canada continues to consume 10 million cars, how much wheat does this deal allow canada to consume? labe it on diagram. show canada accept this deal?