Table 3-26 Assume That Japan and Korea Can Switch Between Producing Cars

question 216

Multiple Choice

Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
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-Refer to Table 3-26. Japan has an absolute advantage in the production of

• A)cars and a comparative advantage in the production of cars.
• B)cars and a comparative advantage in the production of airplanes.
• C)neither good and a comparative advantage in the production of cars.
• D)neither good and a comparative advantage in the production of airplanes.

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Definitions:

Indirectly Paid

A form of compensation or remuneration not made directly through monetary payments but through other benefits or services.

Wasted Coverage

Advertising or marketing effort that reaches an audience not interested in the product, resulting in inefficient spending.

Personal Selling

A sales approach involving direct interaction between a salesperson and a potential customer, usually aimed at persuading the customer to make a purchase.

Sales Promotion

Marketing activities designed to stimulate immediate purchases through incentives like discounts, samples, or special events.