The United States Has a Comparative Advantage and Specialize in the Production

question 78

Multiple Choice

The United States has a comparative advantage and specialize in the production of airplanes. Compared to the situation with no trade, 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.

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Definitions:

Downsizing

The reduction in the size or number of employees in a company as a strategy to improve its financial position.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers and competitors.

Distribution

The distribution of films through normal commercial agencies and theaters.

Mutually Beneficial

A situation or agreement in which all parties involved receive advantages or benefits from the arrangement or relationship.