Table 3-3 -Refer to Table 3-3

question 13

Multiple Choice

Table 3-3
$\begin{array}{|l|c|c|c|c|}\hline&\text { Hours needed to make one unit of: }&&\text { Amount produced in } 2400 \text { hours: }\\\hline & \text { Cars } & \text { Aeroplanes } & \text { Cars } & \text { Aeroplanes } \\\hline \text { US } & 40 & 160 & 60 & 15 \\\hline \text { Europe } & 50 & 150 & 48 & 16 \\\hline\end{array}$
-Refer to Table 3-3.If Europe and the US trade according to the principle of comparative advantage:

• A)all individuals in both countries will gain
• B)both countries can have more aeroplanes and cars
• C)Europe will specialise in cars and the US will specialise in aeroplanes
• D)both countries will consume on their own production possibilities frontier