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

question 61

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. Without trade, Japan produced and consumed 50 cars and 6 airplanes and Korea produced and consumed 27 cars and 7 airplanes. Then, each country agreed to specialize in the production of the good in which it has a comparative advantage and trade 28 cars for 8 airplanes. As a result, Japan gained

• A)0 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
• B)2 cars and 2 airplanes and Korea gained 1 car and 1 airplane.
• C)28 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes.
• D)52 cars and 8 airplanes and Korea gained 28 cars and 8 airplanes.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Us-Them Hostility

An adversarial attitude or conflict between groups, characterized by a polarized perception of "us" versus "them."

Athletic Games

Competitive physical activities or sports where participants engage in specific exercises or tasks to test their skills, strength, and endurance.