If Productivity Growth in Japan Exceeds Productivity Growth in the U.S

question 115

Multiple Choice

If productivity growth in Japan exceeds productivity growth in the U.S. ,to the point that the resource cost in ALL Japanese industries is lower than in the U.S. ,then

• A)there is no feasible way for the U.S.and Japan to continue to trade.
• B)mutually beneficial trade is possible.
• C)trade between the U.S.and Japan is possible,but only Japan will benefit from it.
• D)trade between the U.S.and Japan is possible,but only the U.S.will benefit from it.

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