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

question 516

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. Assume that Japan and Korea each has 2400 hours available. If each country spends all its time producing the good in which it has a comparative advantage and trade takes place at a price of 12 cars for 6 airplanes, then

• A)Japan and Korea will both gain from this trade.
• B)Japan will gain from this trade, but Korea will not.
• C)Korea will gain from this trade, but Japan will not.
• D)neither Japan nor Korea will gain from this trade.

Understand the impact of social errors or biases on beliefs and decision making.

Evaluate the role of skepticism and critical thinking in assessing information and claims.

Understand the concept of perception and its reliability in representing the real world.

Recognize the importance of skepticism in evaluating information presented by others.

---

Definitions:

Defined Contribution Plan

A retirement plan in which the amount of the employer's annual contribution is specified.

Workers' Compensation Insurance Program

A mandatory insurance program that provides benefits to employees who suffer job-related injuries or illnesses, covering medical care, wage replacement, and rehabilitation.

Pension Plan

A retirement plan that requires an employer to make contributions into a pool of funds set aside for a worker's future benefit. The fund is invested on the employee's behalf, and the earnings on the investments generate income to the worker upon retirement.

Post Retirement

The phase of life after an individual has ended their professional career, often focusing on leisure, personal interests, and potentially part-time work.