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

question 287

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.Assume that Japan and Korea each has 2400 hours available.If each country spends all its time producing the good in which it has a comparative advantage and trade takes place at a price of 12 cars for 6 airplanes,then

• A) Japan and Korea will both gain from this trade.
• B) Japan will gain from this trade, but Korea will not.
• C) Korea will gain from this trade, but Japan will not.
• D) neither Japan nor Korea will gain from this trade.

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Definitions:

Methanol

A light, volatile, colorless liquid with a distinctive alcoholic odor, used as an antifreeze, solvent, fuel, and as a denaturant for ethanol.

Ka

An abbreviation for acid dissociation constant, a quantitative measure of the strength of an acid in solution, representing the equilibrium constant of its dissociation.

Conjugate Acid

A species formed by the reception of a proton (H+) by a base, related to its conjugate base by the difference of one hydrogen atom.

Ethanol

A two-carbon alcohol, commonly known as alcohol, with the chemical formula C2H5OH, used as a solvent, fuel, and in beverages.