Table 3-5 -Refer to Table 3-5. If Canada and Japan Trade Based

question 135

Multiple Choice

Table 3-5

-Refer to Table 3-5. If Canada and Japan trade based on the principle of comparative advantage, which of the following is correct?

• A)Canada will export cars and Japan will export airplanes.
• B)Canada will export airplanes and Japan will export cars.
• C)Canada will export cars and Japan will export cars.
• D)Canada will export airplanes and Japan will export airplanes.

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or service activity, such as materials and labor.

Per Copy

"Per copy" refers to the cost or price of each individual unit when items are produced, sold, or purchased in multiple units or batches.

Multiple Regression Model

A statistical technique that uses several explanatory variables to predict the outcome of a response variable.

Dependent Variable

A variable whose value depends on that of another, used in experiments to test the effects of changes in an independent variable.