The Following Table Indicates the Production Possibilities of Cars and Clothing

question 193

Multiple Choice

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

Which of the following is true?

• A)No gains from trade are possible.
• B)Joint output would be maximized if the United States specialized in producing cars and Japan in producing clothing.
• C)Mutual gains from trade could be realized if the United States specialized in clothing production and Japan in car production.
• D)The Japanese are the high-cost producers of both cars and clothing.

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Definitions:

Population Mean

The average of all the values in a population, which is the total set of individuals, items, or data under study.

Sample Size

The number of observations or units included in a sample, which impacts the precision of statistical estimates.

Population Size

The total number of individuals or units in the group that a researcher or analyst is interested in studying.

Mass Marketing

A strategy that aims to promote products and services to a larger audience with the intention of achieving economies of scale and reaching a broad consumer base.