Table 3-39 Assume That Japan and Korea Can Switch Between Producing Cars

question 460

Multiple Choice

Table 3-39
Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate.
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-Refer to Table 3-39. Japan should specialize in the production of

• A)cars and import airplanes.
• B)airplanes and import cars.
• C)both goods and import neither good.
• D)neither good and import both goods.

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Definitions:

Current Liability

Obligations or debts that a company needs to settle within one year or one business cycle, whichever is longer.

Financial Liability

An obligation to pay money to another party, recorded on a company's balance sheet.

Contractual Obligation

A duty or responsibility one party owes to another under the terms of a contract.

Short-term Notes

Financial obligations or debts that are due to be paid within a year.