The United States can produce 30 computers for every car it produces, and Japan can produce 15 computers for every car it produces.Based on this information, which of the following statements is incorrect?
A.The United States should specialize in computer production.
B.Japan has the comparative advantage in car production.
C.There will be gains from trade if the United States exports computers to Japan.
D.Japan has an absolute advantage in car production.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q7: If the opportunity costs of production are
Q22: Countries that engage in trade will tend
Q29: Taken collectively, people in nations that engage
Q31: (Table: Production Possibilities for Machinery and Petroleum)
Q32: (Table: Production Possibilities for Machinery and Petroleum)
Q33: The belief that trade must be bad
Q34: (Table: Production Possibilities for Machinery and Petroleum)
Q35: (Table: Production Possibilities for Machinery and Petroleum)
Q38: The United States, at the point where
Q44: Which of the following trade patterns is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents