Table 3-7 Assume That Japan and Korea Can Switch Between Producing Cars

question 156

Multiple Choice

Table 3-7
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.

-Refer to Table 3-7.We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea.If we were to do this,measuring airplanes along the horizontal axis,then

• A) the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3.
• B) the slope of Japan's production possibilities frontier would be -0.2 and the slope of Korea's production possibilities frontier would be -0.33.
• C) the slope of Japan's production possibilities frontier would be 0.2 and the slope of Korea's production possibilities frontier would be 0.33.
• D) the slope of Japan's production possibilities frontier would be 5 and the slope of Korea's production possibilities frontier would be 3.

Identify goods that are not considered scarce and understand exceptions to the scarcity principle.

Understand the impact of international trade on domestic market prices and quantities.

Identify the effects of tariffs and quotas on domestic economies and global trade.

Recognize the benefits of comparative advantage and the role it plays in international trade.

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Definitions:

Trustworthiness

Whether a source will honestly tell you what he or she knows.

Halo Effect

The assumption that because people have one desirable trait (e.g., attractiveness), they also possess many other desirable traits (e.g., intelligence).

Fear-based Messaging

A strategy that uses scare tactics or the threat of negative consequences to influence behavior or attitudes.

Moderate-fear Message

Communication that utilizes a moderate level of fear to persuade or motivate behavior change without overwhelming the audience.