Table 3-26 Assume That Japan and Korea Can Switch Between Producing Cars

question 271

Multiple Choice

Table 3-26
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
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-Refer to Table 3-26. Japan and Korea would not be able to gain from trade if Korea's opportunity cost of one car changed to

• A)1/5 airplane.
• B)1/3 airplane.
• C)3 airplanes.
• D)5 airplanes.

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Definitions:

Worker Productivity

A measure of the output of goods and services produced by a worker within a certain period of time.

Direct Supervision

A management approach where a supervisor directly oversees and controls the work activities of employees.

Sole Proprietor

A business owned and operated by a single individual, where the owner is personally responsible for the business's debts.

Initial Investment

The amount of money used to start a new business venture, project, or investment.