-Refer to Table 3-5

question 60

Multiple Choice

-Refer to Table 3-5. How could Canada and Japan both benefit?

• A) by Canada specializing in airplanes and Japan specializing in airplanes
• B) by Canada specializing in cars and Japan specializing in airplanes
• C) by Canada specializing in airplanes and Japan specializing in cars
• D) by Canada specializing in neither good and Japan specializing in both goods

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Definitions:

Opportunity Costs

The loss incurred by not opting for the alternative that stands as the next best choice during decision-making.

Specialization

The process of focusing resources on a limited range of goods or services to gain efficiency or quality advantages.

Comparative Advantage

The capability of an entity to generate a specific product or offer a service with lesser marginal and opportunity costs compared to others.

Trade Benefits

Trade benefits refer to the advantages a country gains from engaging in international trade, such as increased economic growth, diversity of goods, and improved efficiency.