The Following Table Indicates the Production Possibilities of Food and Clothing

question 74

Multiple Choice

The following table indicates the production possibilities of food and clothing per worker day in the United States and Japan.

Which of the following is true?

• A)Since U.S.workers produce more of both food and clothing than Japanese workers,no gains from trade are possible.
• B)Mutual gains from trade could be realized if the United States specialized in food production and Japan in clothing production.
• C)The Japanese are the low-cost producers of both food and clothing.
• D)Joint output would be maximized if the United States specialized in producing clothing and Japan in producing food.

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