The United States decides to follow its comparative advantage and specialize in the production of airplanes. Which of the following will occur?
A) More airplanes will be produced in the United States.
B) There will be no change in the price of airplanes in the United States.
C) The world price of airplanes will increase.
D) The quantity of airplanes demanded in the United States will increase.
Correct Answer:
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Q1: The fundamental force that drives international trade
Q2: Q3: Based on the table below, at what Q4: Who benefits from imports? Q5: Comparative advantage implies that a country will Q7: When the principle of comparative advantage is Q8: In a market open to international trade, 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
A) domestic consumers
B) domestic
A)
