Table 3-5

-Refer to Table 3-5.The opportunity cost of 1 car for Japan is
A)5 airplanes.
B)4 airplanes.
C)1/4 airplane.
D)1/5 airplane.

Question

Table 3-5
 
-Refer to Table 3-5.The opportunity cost of 1 car for Japan is
A)5 airplanes. 
B)4 airplanes. 
C)1/4 airplane. 
D)1/5 airplane.

Quizplus · Accepted Answer

The opportunity cost of 1 car for Japan is 5 airplanes, while the opportunity cost of 1 airplane for Japan is 1/5 cars. Therefore, Japan has a comparative advantage in producing airplanes and should specialize in producing airplanes and trade with other countries for cars.

Table 3-5 -Refer to Table 3-5.The Opportunity Cost of 1 Car for of 1