-Refer to Table 3-5

question 46

Multiple Choice

-Refer to Table 3-5. If Japan and Canada open up trade based on the principle of comparative advantage, who loses in the short term in Canada?

• A) consumers
• B) workers in airplane-producing companies
• C) owners of airplane-producing companies
• D) owners of car-producing companies

---

Definitions:

Differential Profit

The difference in profit from one business alternative compared to another, used to make decisions between various options.

Alternative Use

The potential for a resource or asset to be used in a different manner or for another purpose to generate value.

Differential Cost

The disparity in expenses resulting from choosing between two options or changes in the amount of output.

Manufacturing Operations

All processes involved in converting raw materials into finished goods, including assembly, labor, and use of machinery.