Figure 1 an Example of China-U

question 15

Multiple Choice

Figure 1. An Example of China-U.S. Trade Possibilities
-Considering Figure 1, prior to trade the production of textiles and aircraft for both China and the U.S.are 19 and 9.Which of the following represents the pre-trade situation?

• A) China has a comparative advantage in the production of textiles and the U.S. has a comparative advantage in the production of aircraft.
• B) China has a comparative advantage in the production of aircraft and the U.S. has a comparative advantage in the production of textiles.
• C) China has an absolute advantage in the production of both textiles and aircraft.
• D) The U.S. has an absolute advantage in the production of both textiles and aircraft.

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Definitions:

Upper-Class

The social group at the top of a societal hierarchy that holds the highest status and often wealth, typically exerting significant power and influence.

Legally Subordinate

Refers to a legal status where an entity or individual is considered to have fewer rights or powers in comparison to another in a given legal context.

Planter Class

A social and economic class in the antebellum South, composed of wealthy landowners who owned plantations and many slaves.

Paternalistic

An approach or system where individuals in positions of authority restrict the freedom and responsibilities of those subordinate to them, purportedly in the latter's best interest.