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Table 3-5 -Refer to Table 3-5. If Japan and Canada Trade Based

Question 121

Multiple Choice

Table 3-5
Table 3-5 -Refer to Table 3-5. If Japan and Canada trade based on the principle of comparative advantage, which of the following is correct? A) All individuals in both countries will gain. B) Both countries can have more airplanes and cars. C) Japan will specialize in cars and Canada will specialize in airplanes. D) Both countries will consume on their own production possibilities frontier.
-Refer to Table 3-5. If Japan and Canada trade based on the principle of comparative advantage, which of the following is correct?

A) All individuals in both countries will gain.
B) Both countries can have more airplanes and cars.
C) Japan will specialize in cars and Canada will specialize in airplanes.
D) Both countries will consume on their own production possibilities frontier.

Correct Answer: