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

question 61

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. Without trade, Japan produced and consumed 50 cars and 6 airplanes and Korea produced and consumed 27 cars and 7 airplanes. Then, each country agreed to specialize in the production of the good in which it has a comparative advantage and trade 28 cars for 8 airplanes. As a result, Japan gained

• A)0 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
• B)2 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
• C)28 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes.
• D)52 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes.

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Definitions:

Nativist Approach

A theory in psychology that suggests certain skills or abilities are "native" or hard-wired into the brain at birth.

Universal Grammar

A theory in linguistics that suggests the ability to acquire language is innate to humans and that all human languages share a common underlying structure.

Noam Chomsky

An influential linguist, philosopher, and cognitive scientist known for his theory of generative grammar and critique of behaviorism.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.