Suppose the U

question 18

Multiple Choice

Suppose the U.S.and Japan can both produce airplanes and televisions and the U.S.has a comparative advantage in the production of airplanes while Japan has a comparative advantage in the production of televisions.Also suppose the U.S.has an absolute advantage in the production of both airplanes and televisions.The U.S.should

• A)not trade airplanes or televisions with Japan.
• B)import airplanes from Japan and export televisions to Japan.
• C)export airplanes to Japan and import televisions from Japan.
• D)export both airplanes and televisions to Japan.

---

Definitions:

Depreciable Assets

Long-term assets whose cost is gradually allocated over their useful life, reflecting a decrease in their value.

Exchange Rates

The price of one type of currency when exchanged for another.

Statement Of Retained Earnings

A financial statement that outlines the changes in retained earnings for a specific period, factoring in net income and dividends paid to shareholders.