The Following Table Indicates the Production Possibilities of Cars and Clothing

question 87

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:

Exponential Growth

A process of increase where the quantity grows at a rate proportional to its current value, leading to rapid escalation over time, commonly used in reference to populations, investments, and infectious disease spread.

Unilinear Evolutionary Theory

The assertion that there is only one path through which an organism or society can evolve.

Universal Evolutionary Theory

A concept in sociology that attempts to explain the development of societies from simple to complex forms over time through a process of evolution.

Canadian Society

Refers to the social structures, norms, and cultural aspects unique to Canada, influenced by its diverse population and history.