Suppose the U

question 18

Multiple Choice

Suppose the U.S.and Japan can both produce airplanes and televisions and the U.S.has a comparative advantage in the production of airplanes while Japan has a comparative advantage in the production of televisions.Also suppose the U.S.has an absolute advantage in the production of both airplanes and televisions.The U.S.should

• A)not trade airplanes or televisions with Japan.
• B)import airplanes from Japan and export televisions to Japan.
• C)export airplanes to Japan and import televisions from Japan.
• D)export both airplanes and televisions to Japan.

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Definitions:

Sold

The finalization of a deal in which products or services are traded for money.

Sales Commissions

Payments made to sales employees or agents as a percentage of the sales they generate, serving as an incentive for higher sales performance.

Sales Volume

The quantity of units sold within a specific period, often used to measure a company's activity level or performance.

Units

A measurement for quantifying or expressing the amount of a product, service, or resource, used for purchasing, production, or accounting purposes.