Table 3-7 Assume That Japan and Korea Can Switch Between Producing Cars

question 158

Multiple Choice

Table 3-7
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.

-Refer to Table 3-7.Korea has an absolute advantage in the production of

• A) cars and a comparative advantage in the production of cars.
• B) cars and a comparative advantage in the production of airplanes.
• C) neither good and a comparative advantage in the production of cars.
• D) neither good and a comparative advantage in the production of airplanes.

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