The following table indicates the production possibilities of food and clothing per worker day in the United States and Japan. 
Which of the following is true?
A) Since U.S. workers produce more of both food and clothing than Japanese workers, no gains from trade are possible.
B) Mutual gains from trade could be realized if the United States specialized in food production and Japan in clothing production.
C) The Japanese are the low-cost producers of both food and clothing.
D) Joint output would be maximized if the United States specialized in producing clothing and Japan in producing food.
Correct Answer:
Verified
Q33: If Country A has an absolute advantage
Q41: When Brazil can generate a product using
Q49: The following table indicates the production possibilities
Q51: The following table indicates the production possibilities
Q128: Compared to the no-trade situation, when a
Q136: If a country allows trade and, for
Q161: International trade and competition from abroad
A) provide
Q164: Firms in a high-wage nation such as
Q167: For each watch Denmark produces, it gives
Q173: For each watch Denmark produces, it gives
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