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

question 485

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. Assume that Japan and Korea each has 2400 hours available. Originally, each country divided its time equally between the production of cars and airplanes. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of cars increased by

• A)16.
• B)40.
• C)64.
• D)80.

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Definitions:

Origin Contract

An agreement made between parties in the country of exportation, dictating the terms of the exchange of goods or services.

Risk Of Loss

The possibility that an asset or investment's value will decrease due to changes in market conditions or other factors.

Insurance Coverage

A contract between an individual or entity and an insurance company, detailing the terms under which the insurer will compensate the insured for specified losses.

Harry Levinson

A psychologist known for his work in applying psychological insights to the practice of management and organizational consulting.