Assume the United States Can Use a Given Amount of Its

question 60

Multiple Choice

Assume the United States can use a given amount of its resources to produce either 20 airplanes or 8 automobiles and Japan can employ the same amount of its resources to produce either 20 airplanes or 10 automobiles. The U.S. should specialize in

• A) airplanes.
• B) automobiles.
• C) both goods.
• D) neither good.