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

question 304

Multiple Choice

Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
​
-Refer to Table 3-26. Japan's opportunity cost of one car is

• A)1/5 airplane and Korea's opportunity cost of one car is 1/3 airplane.
• B)1/5 airplane and Korea's opportunity cost of one car is 3 airplanes.
• C)5 airplanes and Korea's opportunity cost of one car is 1/3 airplane.
• D)5 airplanes and Korea's opportunity cost of one car is 3 airplanes.

---

Definitions:

Surpluses

Situations in which the quantity of a good or service supplied exceeds the quantity demanded at a specific price, often resulting in excess stock.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Equilibrium Price

The price point in the market where the amount of products available meets the amount of products consumers want to buy.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices over a given period of time.