Final answer:
We are asked to create a production possibilities frontier for both Canada and Venezuela based on each country's production ability for oil and lumber and to mark a specific desire for Canadians on their frontier.
Step-by-step explanation:
The question asks us to review the numbers for Canada and Venezuela regarding their production capabilities in barrels of oil and tons of lumber. Based on the information provided, in Canada, one worker can produce either 20 barrels of oil or 40 tons of lumber. In Venezuela, one worker can produce either 60 barrels of oil or 30 tons of lumber. Assuming there are 100 workers in each country, we can use these numbers to draw a production possibilities frontier for each country, which graphs the maximum possible production combinations of the two goods that a country can produce given its resources. The frontier for Canada would show that they can produce a maximum of 2,000 barrels of oil (if they produced no lumber) or 4,000 tons of lumber (if they produced no oil), with trade-offs in between. For Venezuela, the frontier would show a maximum of 6,000 barrels of oil (with no lumber) or 3,000 tons of lumber (with no oil). Canadians desire at least 2,000 tons of lumber, and one point to meet this requirement would be where they still can obtain at least 3,000 barrels of oil, represented as a point on their production possibilities frontier.