Table 2.2.Output Possibilities for South Korea and Japan

question 214

Multiple Choice

Table 2.2.Output possibilities for South Korea and Japan

-Refer to Table 2.2.According to the principle of comparative advantage:

• A) South Korea should export steel
• B) South Korea should export steel and VCRs
• C) Japan should export steel
• D) Japan should export steel and VCRs

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Definitions:

Gain (Loss)

The financial result that occurs when the selling price of an asset is higher (gain) or lower (loss) than its purchase price.

Compute

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The nominal or dollar value printed on a security or instrument, such as a bond or stock, representing its legal value.